FOCUS
STANTEC INC. 2011 SUSTAINABILITY REPORT
One Team. Integrated Solutions.
AT STANTEC, OUR FOCUS IS ON SUCCESSFULLY IMPLEMENTING OUR BUSINESS STRATEGY TO CONSISTENTLY DELIVER RESULTS FOR OUR CLIENTS, EMPLOYEES, AND SHAREHOLDERS.
From across North America and internationally, we provide our clients with integrated design and consulting services in architecture, engineering, interior design, landscape architecture, urban planning, surveying, environmental sciences, economics, project management, and many other disciplines.
In simple terms, the world of Stantec is the water we drink, the routes we travel, the buildings we visit, the industries in which we work, and the neighborhoods we call home.
Our services are provided on projects around the world through approximately 11,000 employees operating out of more than 170 locations in North America and 4 locations internationally. Stantec is publicly traded on the TSX and on the NYSE under the symbol STN.
TABLE OF CONTENTS 4 Stantec at a Glance 36 Focus on Our Clients 8 2011 Performance Highlights 42 Focus on Our Employees 9 About This Report 56 Focus on Our Partners 10 Message to Stakeholders 62 Focus on Our Communities 12 Awards and Recognitions 68 Focus on Our Environment 18 Performance and Goals 80 GRI Content Index 22 What Matters Most 90 Glossary 28 Governance and Management 92 Third-Party Assessment 32 Focus on Our Shareholders 94 Locations
STANTEC INC. 3 STANTEC AT A GLANCE
VISION
To become and remain a top 10 global design firm. Being top 10 means TOP t Recognition for the quality of our work among the top 10 firms in our industry t Working on complex projects for top, long-term clients t Attracting and retaining highly talented, innovative employees 10
MISSION
To be One Team providing integrated solutions to create shared value for our clients, employees, shareholders, and communities. ONE TEAM
STRATEGY
To achieve our vision, we focus on t Positioning Stantec among the top-three service providers in our geographic locations t Focusing on operational excellence t Providing expertise and value-added services to FOUNDATION our clients with a commitment to excellence in CLIENTS project execution through an integrated quality PEOPLE management system t Driving a client-focused culture through cross-selling efforts and account management strategies The successful implementation of our business strategy results in growth. The three key drivers of our strategic focusing on our people. Based on our successes in those plan are our foundation, our clients, and our people. areas, we believe that we are well positioned to realize We create shareholder value through building on our our vision of becoming and remaining a top 10 global foundation, attracting and retaining the best clients, and design firm.
4 2011 STANTEC SUSTAINABILITY REPORT SUSTAINABILITY
We are committed to being a leader and model of sustainability by doing business in a way that meets the needs of the present while contributing to an environmentally, socially, and economically sustainable future. This commitment is at the heart of how we operate and how we deliver solutions to our clients, and is vital to our long-term success in achieving our vision.
BUSINESS MODEL GEOGRAPHIC DIVERSIFICATION
Our business model is based on providing integrated We operate in three main geographic regions: Canada, services across diverse geographic locations, distinct the United States, and International. Our aim is to offer practice area units, and all phases of the infrastructure and the power and resources of a large global entity while facilities project life cycle—planning, design, construction, maintaining the personality and service delivery attitude maintenance, and decommissioning. of a small, local business.
This three-dimensional, sustainable approach ensures that we do not have to depend on any single geographic 4% International location, practice area unit, or life cycle phase for our work.
Each time we strengthen any of the three dimensions, we 56% Canada increase and diversify our business.
2011 Environment Canada GROSS REVENUE BY Industrial REGIONAL OPERATING UNIT
Urban Land United States
Buildings International Transportation LIFE CYCLE 40% United States
TOP: Castle Rock Ridge Wind Power
Pincher Creek, Alberta
STANTEC INC. 5 PRACTICE AREA UNIT SPECIALIZATION
Currently, we provide services in five 11% Urban Land specialized and distinct practice area 24% Buildings unit groupings: Buildings, Environment, 12% Transportation Industrial, Transportation, and Urban
Land. Focusing on this combination 2011 of project services helps differentiate GROSS REVENUE BY us from our competitors and allows PRACTICE AREA UNIT us to enhance our presence in new geographic locations and markets 17% Industrial while establishing and maintaining long-term client relationships. 36% Environment
BUILDINGS Stantec’s Buildings team works with our TRANSPORTATION Stantec’s Transportation team clients to design high performance, cost-effective, and provides a full range of innovative services to facilitate the sustainable buildings. Services include safe and efficient movement of people and goods through t Pre-design services including project and program a variety of modes of transportation. Services include definition and planning t Project management t Architectural and interior design t Transportation planning and investment studies t Structural, mechanical, electrical, and t Engineering acoustical engineering t Construction administration t Sustainability and performance engineering t Infrastructure management t Post-construction services including commissioning and systems optimization URBAN LAND Stantec’s Urban Land team works to enhance the quality of life where people work, live, and play by ENVIRONMENT Stantec’s Environment team provides providing client solutions that are environmentally responsible, our clients with integrated, professional, and sustainable aesthetically beautiful, functional, and technically sound. solutions to their environmental concerns. Services include Services include t Water supply, treatment, storage, and distribution t Planning t Wastewater collection, pumping, treatment, and t Landscape architecture disposal t Geomatics t Watershed management t Engineering t Environmental assessment, documentation, t Project management and permitting t Conceptual and master planning t Ecosystem restoration planning and design t Development approvals and entitlement t Environmental site management and remediation t Infrastructure design t Subsurface investigation and characterization t Construction review t Geotechnical engineering
INDUSTRIAL Stantec’s Industrial team provides 1. US Route 1, Section 6V Replacement 1 2 integrated, practical solutions for complex industrial North Brunswick, New Jersey projects that meet functional needs and are sensitive 3 2. Channelside Redevelopment to the environment. Services include Tampa, Florida Project planning and development t 453. Edmonton International Airport Expansion t Functional programming Edmonton, Alberta t Engineering 4. Boundary Dam Integrated Carbon Capture and Sequestration Demonstration Project t Project management Estevan, Saskatchewan t Project services including construction support 5. Kentucky River Locks and Dams Engineering Services t Strategic advisory services Various Locations, Kentucky
6 2011 STANTEC SUSTAINABILITY REPORT STANTEC INC. 7 2011 PERFORMANCE HIGHLIGHTS
FOCUS ON OUR SHAREHOLDERS FOCUS ON OUR PARTNERS › We once again earned a spot on the Canadian › We launched our enhanced Supplier Carbon Disclosure Leadership Index Diversity program › We have been included in the Jantzi Social › Our spend for small businesses was $48.6 million, Index since 2007 representing 18.6% of our total US spend › Our gross revenue increased 11.3% to $1.7 billion › Total revenue for our Aboriginal partnerships was over $13 million
FOCUS ON OUR CLIENTS FOCUS ON OUR COMMUNITIES › Our team received double honors at Green Living › We were recognized as one of the Best 50 Enterprise’s Awards for Excellence in Corporate Citizens in Canada Corporate Responsibility › Cash donations made through our Community › We achieved ANSI accreditation for greenhouse Investment program totaled $901,000 gas verification under ISO 14065 › To promote employee volunteerism, we expanded › Our internal research and development fund our Dollars for Doers program to all offices increased by 50%, up to $450,000
FOCUS ON OUR EMPLOYEES FOCUS ON OUR ENVIRONMENT › We were selected as one of Canada’s Ten Best › We were again named one of Canada’s Companies to Work For Greenest Employers › Our wellness program won two ClearAdvantage › Our integrated management system was registered corporate wellness program awards in the US to the ISO 14001:2004 standard › We initiated an “Emerging Leaders” program for › The number of our offices with a local Sustainability employees with promising leadership potential Team grew to 88
8 2011 STANTEC SUSTAINABILITY REPORT ABOUT THIS REPORT
This is Stantec’s fifth annual sustainability report, providing procedures is available on pages M-72 and M-73 in our 2011 an overview of the Company’s environmental, social, and Financial Review. Significant accounting judgments, estimates, economic sustainability performance for the 2011 calendar year. and assumptions used in preparing our financial information This report focuses on information pertinent to Stantec’s most are described in note 5 on pages F-19 to F-21 in our 2011 material issues and priorities and was prepared in accordance Financial Review. with the internationally recognized G3.1 Sustainability Reporting Guidelines developed by the Global Reporting All other information in this report, including nonfinancial Initiative (GRI). information, is subject to internal data management systems and controls. When possible, details regarding data collection Unless otherwise indicated, the information in this report techniques, internal controls, and estimations are provided in includes all Stantec operating companies worldwide and applies subsequent sections of this report as well as in the GRI index only to employees working in premises owned or leased by at the end. Stantec. Information about work carried out on client sites and by contracted employees is largely excluded. One notable All data extracted or referenced from our 2011 consolidated exception is health and safety data, which cover all Stantec financial statements, found in our 2011 Financial Review, employees wherever they work, as well as all contractors for have been audited. In 2012, a third-party auditor will verify whom we are legally responsible. our greenhouse gas (GHG) emissions inventory for the 2011 reporting year. We did not seek external independent Financial data included in this report and previously disclosed verification for other data contained in this report. In 2011, in our 2011 Financial Review were prepared according to we assessed the feasibility of third-party assurance for this International Financial Reporting Standards (IFRS). Unless report and decided not to pursue formal assurance at this time. otherwise indicated, all funds are in Canadian dollars. To evaluate the content and quality of this report, we have Our Company’s disclosure controls and procedures are engaged a third-party organization to facilitate a stakeholder designed to ensure that financial information we are required advisory roundtable. Through regular engagement with our key to disclose in reports filed with securities regulatory agencies stakeholders, we can ensure that our sustainability reports meet is recorded, processed, summarized, and reported on a timely their expectations. For more information on our stakeholder basis. Further information on our disclosure controls and engagement strategy, see pages 22 to 24.
STANTEC INC. 9 MESSAGE TO STAKEHOLDERS
Despite the ongoing challenges of the business environment in 2011, Stantec remained focused on our long-term vision to become and remain a top 10 global design firm and had the resilience to not only expand our operations, but also increase investment in improving our sustainability performance. We anticipate that providing solutions that are both innovative and sustainable will continue to be critical to our success in reaching this goal.
Sustainability is becoming increasingly important to us as complex global issues such as climate change and the scarcity of natural resources assume greater significance, posing risks and opportunities for both ourselves and various stakeholders. On the one hand we see risks such as project interruptions or delays resulting from unexpected environmental conditions. At the same time, we foresee opportunities to respond to increased market demand for services that address these pressing challenges.
We continued to grow in 2011, enhancing our local strength and expanding the depth and breadth of our services. But no matter how much we grow, we remain committed to supporting environmental, social, and economic responsibility by continuing to improve and by helping our clients achieve their sustainability goals, carrying out our business in a way that meets the needs of the present while contributing to a sustainable future.
We recognize that Stantec’s key sustainability impacts result from both our in-office operations and the services we provide. Therefore, our sustainability strategy is focused on 1) understanding the extent of those impacts, 2) integrating sustainability principles into our overall operations and daily practices, and 3) building a leading sustainability consulting practice.
In 2011, we took some focused steps towards achieving our long-term sustainability vision: t FOCUS ON OUR SHAREHOLDERS. We ended the year with a strong balance sheet and an increase in operating cash flows, giving us the flexibility to continue to grow both organically and through acquisitions t FOCUS ON OUR CLIENTS. We achieved accreditation by the American National Standards Institute (ANSI) for greenhouse gas (GHG) verification under ISO 14065, which will enhance our ability to provide GHG services to our clients t FOCUS ON OUR EMPLOYEES. We developed several new Health, Safety & Environment (HSE) training modules, strengthening our capacity to maintain a healthy and safe workplace t FOCUS ON OUR ENVIRONMENT. We implemented and successfully registered an organization-wide environmental management system (EMS) to the ISO 14001:2004 standard, building a strong foundation for benchmarking and improving our environmental performance
10 2011 STANTEC SUSTAINABILITY REPORT t FOCUS ON OUR PARTNERS. We launched our enhanced Supplier Diversity program, which we expect will improve our utilization of small business subcontractors, thus increasing our capacity to support our clients’ needs t FOCUS ON OUR COMMUNITIES. Cash donations made through our Community Investment program totaled $901,000 (1.8 percent of our annual pre-tax profits), demonstrating our commitment to supporting the communities in which we work
In 2011, Stantec was named one of the Best 50 Corporate Citizens in Canada and one of Canada’s Ten Best Companies to Work For. For the second year in a row, we were selected as one of Canada’s Greenest Employers, and our exceptional climate change information disclosure practices once again earned us a spot on the Canadian Carbon Disclosure Leadership Index. Accomplishments such as these demonstrate that we are improving our performance in all aspects of sustainability—economic, environmental, and social.
While we have many achievements to celebrate, we recognize that we still have much work to do. We need to continue building a workforce that includes regionally appropriate representation of women, visible minorities, and individuals with disabilities, especially in management and leadership positions. This will ensure that we have the breadth of talent, perspectives, and experiences needed to succeed in our global workplace. With these goals in mind, we are developing a more comprehensive diversity strategy. Another ongoing challenge is to develop better systems for tracking nonfinancial data such as environmental metrics—namely, GHG emissions, energy, materials, and water use. As we continue to enhance our capabilities in these areas, we will be in a better position to set appropriate goals and measure our progress toward achieving them.
Over the next few years, we also plan to increase sustainability awareness at all levels within the organization and to develop more comprehensive and consistent methods of engaging with our key stakeholders—our employees, clients, shareholders, partners, and community members—so that we can better ensure that we are prioritizing our sustainability efforts appropriately.
I am pleased to present Stantec’s fifth annual sustainability report, based this year on the updated G3.1 Sustainability Reporting Guidelines developed by the Global Reporting Initiative (GRI), an international, multistakeholder network of sustainability experts. We believe that this report is a reasonable presentation of Stantec’s economic, environmental, and social performance for 2011.
Bob Gomes, P.Eng. President & CEO
STANTEC INC. 11 AWARDS AND RECOGNITIONS
2011 COMPANY AWARDS AND RECOGNITIONS
2011 Best 50 Corporate Citizens in Canada Stantec was once again included as one of the Best 50 Corporate Citizens in Canada in this 10th anniversary ranking by Corporate Knights magazine. This year Stantec ranked #30 on the list.
2011 Excellence in Corporate Responsibility Awards Stantec received double honors at Green Living Enterprise’s inaugural Awards for Excellence in Corporate Responsibility. Marty Janowitz, Stantec Vice President, Sustainable Development, captured an individual award for team leadership in the category of large companies in the financial, insurance, and professional services industries. Stantec’s Sustainable Development team received an honorable mention in the same category.
2011 Canada’s Ten Best Companies to Work For Stantec was named one of Canada’s Ten Best Companies to Work For by the Financial Post. This competition recognizes fast-growing companies that offer tremendous career advancement opportunities together with leading-edge employee perks and benefits.
2011 Canada’s Top 100 Employers Stantec was selected for the first time as one of Canada’s Top Employers by Mediacorp Canada Inc. Eligible employers are evaluated using criteria such as work atmosphere, employee benefits, and training and skills development.
2011 Alberta’s Top 50 Employers Stantec was selected as one of Alberta’s Top Employers for the third year in a row by Mediacorp Canada Inc. This special designation recognizes Alberta employers that lead their industries in offering exceptional places to work.
2011 Canada’s Greenest Employers Stantec was selected for the second year in a row as one of Canada’s Greenest Employers by Mediacorp Canada Inc. This award recognizes employers that lead the nation in creating an organizational culture of environmental awareness.
2011 Canada’s Top Employers for Young People Stantec was selected for the first time as one of Canada’s Top Employers for Young People by Mediacorp Canada Inc. Employers on this list are Canada’s leaders in attracting and retaining younger employees to their organizations.
12 2011 STANTEC SUSTAINABILITY REPORT Jantzi Social Index Since 2007, Stantec has been included in the Jantzi Social Index (JSI). Compiled and maintained by Jantzi Sustainalytics, the JSI is a socially screened, market- capitalization-weighted common stock index modeled on the S&P/TSX 60. It is a select list of Canadian companies that pass a set of broadly based environmental, social, and governance rating criteria.
Climate Registered™ Stantec achieved Climate Registered™ status by successfully measuring its carbon footprint according to The Climate Registry’s best-in-class program, then having it third-party verified and reporting the data on The Registry’s website. We are a founding member of the Climate Registry and are recognized as a full reporter.
CDP Carbon Disclosure Leader For the second year in a row, Stantec was selected for the CDP’s Canadian Carbon Disclosure Leadership Index. This recognition highlights the top 20 companies within the Canada 200 Index that have exceptional climate change information disclosure practices. This year Stantec ranked #7 out of the top 20 leaders.
Engineering News-Record Stantec was included on a variety of rankings by Engineering News-Record (ENR). 2011 recognitions included: t No.21, Top 150 Global Design Firms t No.66, Top 100 Green Design Firms t No.22, Top 200 Environmental Firms
Building Design + Construction Stantec was included on a variety of rankings by Building Design + Construction. 2011 recognitions included: t No.8, Top 208 Green Design Firms t No.5, Top 196 University Design Firms t No.6, Top 176 Healthcare Design Firms
Stantec’s projects are regular recipients of design awards, which is a testament to our creative design and solid project execution. For a select list of project awards received in 2011, visit www.stantec.com/2011awards.
STANTEC INC. 13 SELECT PROJECTS THAT GAINED NATIONAL OR INTERNATIONAL RECOGNITION IN 2011
Targeting Net Zero Improving Educational Environments Stantec provided mechanical and electrical engineering “The Springfield School District has proven that their and sustainable design services for the U.S. Department unique curriculum is effective and they strongly believe of Energy’s National Renewable Energy Laboratory that the facility, designed specifically to support that (NREL) Research Support Facility in Golden, Colorado. curriculum, improves that effectiveness,” says Rob A LEED® Platinum-certified project, the lab has a Pillar, Stantec’s principal-in-charge of the Springfield host of national awards under its belt, including the School District – Literacy Center project in Springfield, American Council of Engineering Companies (ACEC) Pennsylvania. Stantec’s design supports a maximum class Grand Award, the American Institute of Architects size of 15 students in first grade, enables the teaching of Committee on the Environment Top Ten Green each student according to their primary learning style, and Projects Award, and an Associated General Contractors immerses students and visitors in the teaching and learning of America Aon Build America Merit Award. The of literacy on all fronts. It received the grand prize award NREL holds claim as the largest commercial building for Outstanding Educational Facility Design in the 20th designed for net-zero energy use in North America. Anniversary Spring 2011 edition of Learning by Design, The 222,000-square-foot (20,625-square-metre) office and the American Institute of Architects Committee on building and data center was designed so that its 800 Architecture for Education Award of Merit. occupants consume only the amount of energy generated by the renewable power on and near the building. The NREL project had previously earned 15 design and construction awards from various organizations.
1. Kentucky River Lock and Dam No. 6 Bringing New Life to an Old Dam Multiple Sites, Kentucky 1 The Kentucky River Locks and Dams project required 2. US Department of Energy’s National Renewable Energy Laboratory rehabilitation of a century-old dam on the Kentucky (NREL) Research Support Facility, Golden, Colorado. 23 River. The old dam was not meeting current criteria Architect: RNL Design for structural stability, and Stantec provided a design LEED® Platinum-certified
solution that involved construction of interconnected, 3. Springfield School District Literacy Center concrete-filled sheet pile cells, using an “in-the-wet” Springfield, Pennsylvania LEED® Gold-certified construction approach, which resulted in cost and schedule savings, a reduced construction footprint, and reduced environmental impacts. The project spanned more than five years with approximately 40 project team members fulfilling many different roles and services. It was recognized as a national finalist in the ACEC’s annual awards program, after receiving a Grand Award from ACEC at the state level.
14 2011 STANTEC SUSTAINABILITY REPORT STANTEC INC. 15 And the Academy Award Goes to... Innovation for Pollution Control The Central Manchester Hospitals Project in Manchester, “London takes pride in being a city of opportunity,” says England, involved the reconstruction of a major healthcare Elvio Zaghi, environmental infrastructure principal in campus established more than a century ago, which over Stantec’s London, Ontario, office. “This award reinforces time had suffered from tangled, piecemeal development. the city’s pride in being recognized across Ontario and The new hospital fully integrates building form with leading- Canada as a city of ingenuity, innovation, and invention.” edge clinical planning in setting a new standard for care in The award was a Canadian Consulting Engineering Award Manchester. David Martin, project research institute design of Excellence. The project is London’s Oxford Pollution leader, reflects on the Highly Commended – Best Hospital Control Plant, the largest membrane biological reactor over 40,000SM award conferred on the project at the Design municipal pollution control plant in Canada. Stantec & Health Academy Awards: “The project team is elated that the provided engineering services to study, design, and clarity of our design approach—the integration of three existing construct the plant, and by leveraging our expertise from hospitals, a newly created children’s hospital, and a significant across North America, a creative low-cost solution was academic research institute—has resulted in an award-winning identified and ultimately constructed to convert the existing translational medical and research center, designed to translate plant. This affordable solution both tripled the capacity research findings more quickly into medical practice” he says. of existing tankage and improved treatment performance “This was our first project that physically co-locates researchers to tertiary-level (advanced contaminant removal) quality and clinicians into a single building, and its expression reflects at an overall cost comparable to secondary (intermediate this synergy architecturally, while transforming an urban biological contaminant removal) treatment. precinct within Manchester.” Putting Healthcare First Working Hard So People Can Play Hard Abbotsford Regional Hospital and Cancer Centre is Soldiers Field Soccer/Lacrosse Stadium at Harvard University British Columbia’s first Public-Private Partnership (P3) in Cambridge, Massachusetts, won the Distinguished Facility acute-care hospital and the first LEED® Gold-certified award for Single Field Facilities from the American Sports acute-care hospital in Canada. It recently won first place Builders Association. Stantec provided sport design and in the American Society of Heating, Refrigerating, and engineering services for the new NCAA soccer and lacrosse Air-Conditioning Engineers (ASHRAE) Technology stadium, which includes an infilled synthetic turf surface, Awards, Healthcare Facilities category. Stantec provided custom team areas and a game management area, raised full mechanical engineering services for this new, modern bleacher seating for 1,000, a sports lighting system, and healthcare center in the Fraser Valley, including HVAC, berm seating. The berm seating saved project-export costs plumbing, medical gas, and fire protection. by keeping excess soils on site, while also creating a natural outdoor stadium.
1. Harvard Soccer/Lacrosse Stadium at Soldiers Field 1 2 Boston, Massachusetts
2. Central Manchester Hospitals Manchester, England 3 4 3. Oxford Pollution Control Plant Expansion London, Ontario
4. Abbotsford Regional Hospital and Cancer Centre Abbotsford, British Columbia Architect: Musson Cattell Mackey Partnership LEED® Gold-certified
16 2011 STANTEC SUSTAINABILITY REPORT STANTEC INC. 17 PERFORMANCE AND GOALS
2011-2012 ACTION PLAN
Targets Deadline 2011 Performance Status Governance, Management, and Accountability Further formalize the Executive Sustainability Steering 2011 We continue to explore mechanisms to enhance Committee’s mandate, membership, and operations and formalize effective executive oversight of sustainability commitments. (see page 28) Launch a Sustainable Operations Steering Committee 2011 We did not achieve this formality in 2011, although the underlying goal of enhanced communication and collaboration pertinent to sustainability objectives was advanced. Going forward, we expect to further develop formal and informal mechanisms to build more effective interdepartmental relationships. (see page 28) Develop a comprehensive sustainability stakeholder 2011 Efforts ongoing. (see pages 22 to 27) engagement, analysis, and materiality process 2012 Evaluate the feasibility of third-party assurance for our 2011 2011 We evaluated this option have decided not to sustainability report pursue formal assurance at this time. However, we have engaged CBSR to conduct a stakeholder roundtable to solicit feedback on this report. (see pages 9 and 27) Integrate sustainability goals into the corporate strategic 2012 Efforts ongoing. (see page 28) plan Increase sustainability awareness at the board level 2012 We continued our efforts to increase sustainability awareness at all levels within our organization. (see page 28) Upgrade our current Oracle 11i E-Business Suite to version 2012 Efforts ongoing. (see page 30) 12i. Our Clients Establish functional, collaborative Integrated Sustainability 2011 Collaborative Integrated Sustainability Services Services teams in multiple priority areas of expertise teams have been established which coordinate and leverage our expertise in seven different client opportunity areas. Further exploration is needed to determine how to get them functioning more effectively. (see pages 37 to 39) Achieve accreditation by the American National Standards 2011 In February 2011, Stantec was awarded formal Institute (ANSI) for GHG verification under ISO 14065 accreditation by ANSI for GHG verification under ISO 14065. (see page 38) Achieve $7.1 million in gross revenue from sustainability 2011 In 2011, we tracked $6.4 million in gross revenue projects (a 50 percent increase compared to 2010) from sustainability projects. Due to challenges tracking sustainability projects, this amount only represents a portion of such revenue. (see page 38) Enhance our system for tracking sustainability projects 2011 We continue to work on making our tracking system more effective. (see page 38) 2012 Develop an effective system for tracking sustainability 2012 Efforts ongoing. (see page 38) business pursuits
18 2011 STANTEC SUSTAINABILITY REPORT 2011-2012 ACTION PLAN
Targets Deadline 2011 Performance Status Our Employees Implement a more streamlined HSE incident reporting and 2011 Efforts ongoing. (see pages 49 to 50) management system 2012 Reduce our total recordable injury rate (TRIR) to 0.60 2011 In 2011, our TRIR was 0.79. In 2012, our target is again to reduce our TRIR to 0.60. (see page 50) Work together with facilities that accounted for the greatest 2012 Efforts ongoing. (see page 50) percentage of injuries in 2011 to develop and implement site-specific safety improvement plans. Improve our safety orientation program for new employees 2012 Efforts ongoing. (see page 50) to better educate them about HSE responsibilities and program requirements. Create a senior role focused on employee diversity and 2011 We assigned an employee to the role of Director, inclusion Diversity and Inclusion. (see page 46) Roll out a new anti-corruption learning module for 2012 Efforts ongoing. (see page 53) employees. Our Partners Consider approving a Supplier Diversity Policy. 2012 Efforts ongoing. (see page 56) Our Communities Donate at least 1 percent of our annual pretax profits to 2011 Cash donations made in 2011 through our CI charitable and nonprofit organizations program totaled $901,000, representing 1.8 percent of our annual pre-tax profits, almost double our goal. (see page 63) Develop a Company-wide program to encourage employee 2011 Our Dollars for Doers program was rolled out to all volunteerism of our offices. (see page 64) Complete a thorough evaluation of our Community 2011 Due to a key personnel change, this will now be Investment program, including our focus areas, partners, undertaken in 2012. (see page 64) 2012 and outcomes Donate at least 1 percent of our annual pretax profits to 2012 Efforts ongoing. (see page 63) charitable and nonprofit organizations
STANTEC INC. 19 2011-2012 ACTION PLAN
Targets Deadline 2011 Performance Status Our Environment Complete a GHG emissions inventory of our North 2011 Approximately 98 percent of our offices reported American operations (scope 1 and 2), with more than 95 local data for inclusion in our 2011 GHG emissions percent of offices reporting local data inventory. (see page 70) Complete an environmental footprint of our North American 2011 Concurrently with our carbon footprint, we completed operations an environmental footprint of our North American operations. (see page 71) Implement and successfully register an organization-wide 2011 In September 2011, we successfully completed EMS to the ISO 14001:2004 standard a certification audit for ISO 14001 by BSI Management Systems. We received our official ISO 14001 certification in January 2012. (see page 68) Develop a GHG emissions reduction strategy 2011 As part of our ANSI accreditation process, we developed an in-house GHG Management System, which we apply internally to support improved GHG management, reduction, and disclosure. (see pages 38 and 68 to 70) Establish a set of time-bound environmental improvement 2011 Our ISO 14001 EMS includes time-bound targets environmental improvement targets. (see page 68) Reduce paper use by switching to electronic paystubs 2011 We now offer electronic paystubs in both Canada and the US, where 97 percent of our employees are located. (see page 74) Get 2,500 employees to participate in Stantec’s Cool 2011 Employee participation in the CCC increased by Commute Challenge (CCC), thus avoiding commuting to 10 percent from approximately 2,000 in 2010 to work via a single-occupant vehicle for at least one day 2,200 in 2011, though we did not reach our goal of 2,500. (see page 78) Reinstate our automatic computer hibernation program 2011 In June 2011, we implemented the Green Planet power management tool on all Company desktops and PCs. (see page 74) Reduce the need for business travel and commuting by 2012 In 2011, we rolled out Lync, an instant messaging increasing employee access to collaborative remote program with video chat capabilities, to all Stantec communication tools staff. In 2012, we plan to upgrade to the latest version of Sharepoint. (see pages 76 to 77) Develop an interactive database to streamline the collection 2012 In 2011, we developed a more interactive database and reporting of environmental data which achieved these two goals. (see page 72) Increase the consistency of office-level environmental data 2012 Our enhanced database contributed to increased consistency of office-level environmental data. (see page 72) Increase the number of our offices that meet a LEED-certified 2012 In 2011, we added two new LEED-certified offices standard to nine and vacated one, leaving us with eight LEED-certified offices in total. (see page 73) Reduce per capita energy consumption by 4 percent from 2012 Efforts ongoing. (see page 74) 2010 baseline data Reduce per capita paper usage by 10 percent from 2010 2012 Efforts ongoing. (see page 75) baseline data Increase percentage of 100-percent post-consumer recycled 2012 Efforts ongoing. (see page 76) paper to 60 percent of paper purchased Reduce per capita waste generation by 5 percent from 2012 Efforts ongoing. (see page 75) 2010 baseline data
LEGEND 1. BC Place – New Roof with Interior and Exterior Enhancements Exceeded/Achieved On track Architect: Stantec Architecture Ltd. in association with Cannon Design 1 ahead of schedule Deadline extended (Turf & Seating) Vancouver, British Columbia Achieved New goal Partially achieved/ Achieved after schedule Not achieved
20 2011 STANTEC SUSTAINABILITY REPORT STANTEC INC. 21 WHAT MATTERS MOST
As a diverse and global company, it can be challenging to values among our employees, prospective employees, determine which sustainability issues matter most and are, and individual shareholders. To build and maintain strong thus, the most important to address. To help us decide where relationships with all of these groups, it is essential that we to focus our sustainability efforts, we continually engage with advance sustainability initiatives and continuously improve the people and organizations that have the greatest influence our sustainability performance. on the success of our business and are the most directly affected by our operations and activities—our stakeholders. By engaging As we continue to grow, two additional stakeholder groups, with our stakeholders and identifying their key concerns and our partners and our communities, are becoming increasingly priorities, we can then use this information to help us decide important. By building partnerships with small and diverse which sustainability initiatives to prioritize. businesses as well as with Aboriginal communities and governments, we can augment our expertise and better Our three primary stakeholder groups are our shareholders, support our clients’ needs. Building strong relationships with our clients, and our employees. Our shareholders help the communities in which we work is becoming more critical determine the external valuation of our Company, are as citizens grow to expect greater transparency, accountability, impacted by our existing and anticipated financial performance, and engagement from corporations in all industries. and hold us accountable for improved performance in all areas. Our clients drive our business and can be directly affected by We recognize that our vision can only be realized by anything that could impact the quality of our services. Our maintaining a balance of interests among all of these employees are our most important competitive resource and stakeholder groups and by encouraging each of them to are essential to driving organizational success; therefore, provide valuable input to support continued operational keeping them engaged and motivated is critical. improvements. This annual sustainability report is a key vehicle for communicating with all of our stakeholders A growing number of our clients and institutional shareholders about our sustainability priorities, commitments, and are enhancing their sustainability commitments and standards performance and it provides a foundation for stakeholder and are thus making the companies they are engaged with engagement. This report has thus been primarily organized increasingly accountable for sustainability performance. around the five stakeholder groups above. We are also seeing increased support for sustainability
22 2011 STANTEC SUSTAINABILITY REPORT STAKEHOLDER ENGAGEMENT
We engage with our key stakeholder groups in a variety To continually assess the health of our organization and of ways. We use traditional media, such as interviews to uncover opportunities for improvement, we conduct of and articles by Company leaders and subject-matter annual employee surveys. Because our employees know experts in publications, and interactive social media, our Company best, we highly value their suggestions such as our blog, Twitter, and Facebook, to engage with a and the roles that they may play in driving improved variety of stakeholders. A third-party monitoring service practices. Once a year, we distribute a confidential online has rated our social media outreach as above average. employee survey to gather feedback on important issues For an overview of our key stakeholders and our specific such as career development, leadership performance, and approaches to engaging with each of them, see the workplace satisfaction. For some key results from the 2011 table below. employee survey, see the table on the next page.
We regularly respond to requests for sustainability disclosures from investors, analysts, and clients. Such requests typically ask us to complete a detailed survey regarding our sustainability policies, practices, and performance. From our end, our practice leaders are required to conduct a minimum of four client feedback surveys each year, and the results of these surveys are shared with regional and practice area unit leaders.
STANTEC’S ONGOING ENGAGEMENT APPROACHES WITH KEY STAKEHOLDERS
Stakeholder Group Engagement Approach Shareholders t Investor meetings (e.g., annual general meeting, conference calls) t Investor publications (e.g., financial review, quarterly reports, completed disclosure requests) t Participation in investor events Clients t Client feedback interviews and surveys t Client meetings and events t Print and electronic communications (e.g., business review, brochures, publications, completed supplier questionnaires) Employees t Annual online employee feedback survey t Internal communications (e.g., Inform quarterly print newsletter, emails, Company intranet, SharePoint sites, staff events) t Sustainability Engagement program (see pages 77 to 79) t Training programs (see pages 53 to 55) Partners t Supplier Diversity program (see pages 56 to 57) t Aboriginal partnerships (see pages 56 to 61) Communities t Community Investment program (see pages 62 to 67) t Employee volunteerism (see page 64) t Local, national, and international sponsorships
STANTEC INC. 23 KEY RESULTS FROM 2011 GLOBAL EMPLOYEE SURVEY
Change from 2010
I know what is expected of me at work 3
I have opportunities to utilize my skills, knowledge, and abilities at work on a regular basis 2
In the past year, there were opportunities for me to learn and grow professionally at Stantec 2 My supervisor has consistently demonstrated competent 5 managerial skills that align with the values of the organization Rate your level of satisfaction with your current job 3 I would recommend working at Stantec to a friend 2 0%10 20 3040 50 60 70 80 90 100
Favorable Neutral Unfavorable
Favorable responses were up compared to 2010 in every We encourage our regional, sector, and practice leaders to solicit one of the 14 overall performance criteria surveyed, which input on our strategy from employees and then to share the best demonstrates that we have successfully listened to and ideas with our Executive Leadership Team. In November 2011, responded to the majority of our employees’ needs. The 2011 we invited all these leaders from across the Company to attend survey results highlighted three key priority areas where our a leadership forum in Denver, Colorado, to share and discuss employees felt that we can improve overall as an organization. ideas together and to help shape our strategic plan. For a list of these priority areas along with associated actions and targets, see the table below. We are continually exploring ways to more consistently and effectively communicate with our employees. In 2012, we will After an extensive review of the 2011 employee survey results, develop a communication-focused performance metric for our Human Resources team worked with leadership to develop senior leadership, with each senior vice president required to goals and action plans to address priority issues for the report on their office visits so we can measure their effectiveness Company as a whole. In addition, our regional leaders worked in having more face-to-face meetings. closely with business unit leaders to develop action plans to address concerns at the regional and local level. We have been working on implementing these plans throughout the year.
KEY PRIORITIES IDENTIFIED FROM 2011 EMPLOYEE SURVEY
What Our Employees Want What We’re Doing Performance Targets To know more about Stantec’s strategic plan and We communicate Stantec’s strategic plan to In 2012, we will launch our improved community our vision for the future. employees via our quarterly employee magazine, pages on our Company intranet, StanNet, our intranet, eBulletins, and leadership office which will help to support improved two-way visits. communication and collaboration. A well-defined career path for various job We are developing clear career path In 2012, we plan to create distinct career path functions at Stantec to help them more clearly documentation for each of the job functions streams that are equally valued in terms of understand what options they have to build their within Stantec. fiscal authority, responsibility, and growth and career with the Company. compensation potential. To be compensated fairly and to have access to a We have a dedicated Compensation team We will continue to conduct regular reviews competitive benefits program. that reviews market data on a regular basis of industry data and to make adjustments as so that we can accurately benchmark our total required to ensure that we remain competitive. compensation package with our industry peers We also aim to remain transparent about our and ensure that we remain competitive. Our compensation and benefits program. analysis shows that, overall, we are at or above our industry peers in nearly all areas.
24 2011 STANTEC SUSTAINABILITY REPORT MATERIALITY ANALYSIS
We measure and report on our sustainability performance The table on the next page lists the 15 initial material issues because we believe that what gets measured gets identified in order of assessed relative importance and managed. To confirm that our sustainability initiatives are references the report section where further information appropriately focused, we are developing a more systematic on each issue can be found. Our intention is to prioritize approach to evaluate and prioritize the materiality of issues measuring, evaluating, and improving our sustainability that are of greatest importance to our business and our key performance in these areas and to regularly refine or stakeholders. In consideration of changing business and adjust our core focus areas as we gain insight from our key stakeholder needs, we aim to review our material issues stakeholder groups. annually. This will help us confirm that our sustainability priorities remain relevant and focused as our Company Towards this objective, prior to releasing our 2010 continues to grow and evolve. sustainability report, we developed a short online survey focused on our sustainability efforts, performance, Following on work started in 2010, we continue to advance and communications. We invited all our employees to a process of strengthening our materiality assessment provide feedback via this mechanism to help us assess practices. We considered a broad range of sustainability their key concerns and priorities regarding our issues using indicators primarily derived from the GRI sustainability strategy. G3 sustainability reporting guidelines and the Ceres Roadmap for Sustainability. We then assessed the degree For this initial effort we attained a statistically significant to which each issue is important to our key stakeholders response rate from employees, with almost 700 staff and may impact our environmental, social, and economic members completing the survey. In addition we undertook performance, as well as the extent to which Stantec has an a pilot version of this survey with a small sample of our ability to influence each issue. By categorizing issues that key clients and investors. While this pilot survey was not ranked as “medium” or “high” for each of these factors statistically significant as it had less than 10 respondents as “material” to Stantec, we identified an initial list of from each group, the effort yielded preliminary feedback 15 material sustainability issues. For a summary of this and a useful basis from which to develop more robust analysis, see the table below. external stakeholder outreach in the future.
In addition to other questions, each stakeholder was STANTEC’S MATERIAL SUSTAINABILITY ISSUES asked to rank the 15 preselected material sustainability issues according to relative importance to them. Their High input was informative in refining our material topics and 1 2 priorities. For the results of this exercise, see the table on 4 3 the next page. 10 7 6 5 11 8
13 12 9
Importance to stakeholders 15 14
MediumImpact on Stantec’s sustainability performance High
Numbers correspond with Stantec’s 15 material sustainability issues listed in the table on page 26
STANTEC INC. 25 STANTEC’S MATERIAL SUSTAINABILITY ISSUES
Ranking by # Sustainability Issue Employees Report Section 1 Financial revenues 13 Pages 32 to 33 2 Executive level accountability of sustainability issues 10 Page 28 3 Sustainability policies and management systems 6 Pages 29 to 31 and 68 4 Stakeholder engagement and dialogue 15 Pages 22 to 27 5 Client satisfaction, respect, and confidentiality 8 Pages 23 and 89 6 GHG emissions, management, and reduction 7 Pages 69 to 70 7 Employee training and career development 3 Pages 53 to 55
8 Waste generation, management, and reduction 1 Pages 71 to 79 9 Integrating sustainability into our services 4 Pages 36 to 41 10 Employee equity and diversity 11 Pages 46 to 48 11 Occupational health and safety 9 Pages 49 to 50 12 Community investment and involvement 5 Pages 62 to 67 13 Employee benefits and wellness programs 2 Pages 51 to 52 14 Board oversight of sustainability issues 14 Page 28 15 Sustainable supply chain management 12 Pages 56 to 57 and 76
Going forward, we aim to increase engagement with employees, In 2012, we plan to solicit feedback via this survey as clients, investors, and other key stakeholders who will help us we promote the release of this sustainability report. This confirm that our sustainability strategy is focused on both who timing will enable us to use stakeholder feedback to inform and what matters most. our sustainability strategy and reporting for the subsequent year. For more information about this survey, see the back To that end, in 2012, we will expand distribution of the inside cover. invitation to complete our revised sustainability survey. By promoting this survey through various traditional and social We are also evaluating means of strengthening our relationships media avenues, we expect to solicit feedback from a greater with key stakeholders by developing a more systematic and more diverse mix of our stakeholders. For example, we stakeholder engagement, analysis, and materiality approach. will explore more extensive means of reaching our investor This approach will consider opportunities to engage with community, such as by including a link to the survey in the a more diverse mix of participants, as well as additional proxy package we mail out to all of our investors. By better engagement opportunities, to confirm that our processes for engaging with our key client account managers across the materiality assessment focus on what matters most: discerning Company, we can gain feedback from more of our clients. the main interests, expectations, and priorities raised by stakeholders; our significant economic, environmental, and social impacts; and our impact and influence on our stakeholders’ assessments and decision making.
26 2011 STANTEC SUSTAINABILITY REPORT THIRD-PARTY ASSESSMENT
We are also taking steps to gain more independent and Another avenue for gathering independent feedback on informed feedback specifically focused on the structure, our annual sustainability report is by entering corporate content, and quality of our sustainability report. This will reporting award competitions. Our 2010 sustainability help us to continually improve these reports and make report was the first one which we submitted for them more useful for our stakeholders. consideration for awards. We submitted it to the Canadian Institute of Chartered Accountants (CICA) Corporate As a first step, we enlisted a third party to conduct a Reporting Awards, as well as to the Corporate Register limited high-level assessment of our 2010 sustainability Reporting Awards. In the CICA awards, we were ranked report. We engaged Canadian Business for Social second in the Sustainable Development reporting category Responsibility (CBSR), a member-led organization for our industry group. For both of these competitions, we that works with companies to improve their social and received constructive feedback from judges or voters as to environmental performance and to which Stantec belongs. the strengths and weaknesses of our report, which was used CBSR reviewed our report, identified its key strengths and to plan for improvements to our 2011 sustainability report. weaknesses, and assessed the degree to which it adhered to the 10 GRI principles for sustainability report content As described on pages 23 to 26, in 2012 Stantec will and quality. CBSR’s findings and recommendations were continue to evaluate means of strengthening our outlined in an eight-page report provided to Stantec as relationships with key stakeholders, as well as to develop well as in a one-page summary, which was published at systematic processes by which we can improve the the back of our 2010 sustainability report. We incorporated materiality and quality of our sustainability reporting. several of CBSR’s suggestions when preparing our 2011 sustainability report.
To assess our 2011 sustainability report and to determine whether we made progress in areas highlighted for improvement, we asked CBSR to convene a small advisory group made up of a few key stakeholders. This stakeholder roundtable reviewed a draft version of our report and presented feedback and recommendations during a half-day event held in Toronto in May 2012. The roundtable’s findings and recommendations were included both in a report presented to Stantec, as well as in a short summary statement, which can be found on page 92. These suggestions will be taken into account when preparing our 2012 sustainability report.
STANTEC INC. 27 GOVERNANCE AND MANAGEMENT
WE BRING VALUE TO OUR DIVERSE STAKEHOLDERS BY ENSURING GOOD GOVERNANCE, STRONG LEADERSHIP, AND EFFECTIVE MANAGEMENT OF ENVIRONMENTAL, SOCIAL, AND ECONOMIC ISSUES.
Our Sustainable Development (SD) group strives to achieve We are committed to continually improving our management this vision on behalf of Stantec through two core objectives: and governance of sustainability issues. In 2011, to provide 1. to build a leading sustainability consulting practice a platform for representatives from all corporate support in the markets we serve, and groups (such as Human Resources, Financial Services, and 2. to integrate sustainability into our overall Risk Management) to collaborate in setting and achieving operations and everyday practices. sustainability goals, we planned to establish a Sustainable The SD group includes a small team of dedicated staff who Operations Steering Committee. While we accomplished collaborate with other teams across the Company to achieve worthwhile steps towards the underlying goals of enhanced these objectives. Our Vice President, Sustainable Development communication and collaboration, they did not result in leads this group and holds operational responsibility for establishing a formal committee. Going forward, we plan sustainability efforts, although overall accountability for to further address this objective by assessing the most sustainability performance still ultimately belongs to the Chief effective means of organizing interdepartmental relationships Executive Officer (CEO). For more information about the SD in the context of shared sustainability objectives and group and its initiatives, see pages 37 to 39. overlapping responsibilities. In 2012, we also plan to assess the most productive means of evaluating and approving During the past three years members of our Executive sustainability goals and considering their integration Leadership Team (ELT) have acted as an informal Executive into our corporate strategic plan, as well as to increase Sustainability Steering Committee, championing sustainability sustainability awareness at all levels within our organization. efforts, holding senior leadership responsibility, and guiding the Vice President, Sustainable Development. Recognizing We recognize that if we are going to truly embed the ongoing need to strengthen both executive engagement sustainability into our organizational culture, we need and oversight, in 2012 we intend to explore opportunities to involve staff at all levels. This is why we have made to enhance and formalize these reporting mechanisms. it a priority to educate our employees on sustainability topics and engage them in sustainability issues via our companywide Sustainability Engagement program. For more information about this initiative, see pages 77 to 79.
STANTEC’S SUSTAINABILITY VISION IS TO ACHIEVE THE FOLLOWING:
t Environmental Progress—Reduce our impact on the environment by progressing toward least-impact approaches to resource and energy use, waste, and emissions of carbon and toxins t Social Progress—Engage with stakeholders and support the communities in which we operate t Economic Viability—Demonstrate that our sustainability efforts lead to long-term business vibrancy and viability in concert with Stantec’s overall vision, strategic plan, and business objectives
28 2011 STANTEC SUSTAINABILITY REPORT POLICIES AND PRACTICES
Stantec’s board of directors approves all policies that Our Code of Ethics policy dictates that we conduct business impact the stewardship or governance of the Company, in accordance with high ethical, moral, and legal standards, and the COO approves all remaining Company policies. efficiently, in good faith, with due care, and in the best interests Employees agree to comply with Stantec’s policies and of the Company, its employees, its shareholders, and other practices via sign-off on their employment agreement stakeholders. Some of our other business conduct policies at the point of hire as well as annually during their career address issues such as human rights (e.g., our Harassment development and performance review. Our Code of and Discrimination policy) and anticorruption (e.g., our Ethics; Integrity; Majority Voting; and Health, Safety, Conflict of Interest and Insider Trading Prohibition policies). and Environment policies are disclosed in the Investors/ Governance section of our public website, stantec.com. Our Integrity Policy provides a number of media through All other policies are published internally on our which confidential complaints or grievances can be made. Company intranet. Our corporate Sustainability policy underscores our long-time commitment to sustainability and articulates our approach to achieving our sustainability vision.
STANTEC SUSTAINABILITY POLICY
Stantec is committed to being a leader and model of sustainability by doing business in a way that meets the needs of the present while contributing to an environmentally, socially, and economically sustainable future. This commitment is at the heart of how Stantec operates and how it delivers solutions to its clients and is vital to its long-term success in achieving its vision.
STANTEC INC. 29 INTEGRATED MANAGEMENT SYSTEM
At Stantec, our core commitment to technical, project “The commitment of your firm’s leadership and design team management, and client service excellence forms was integral to our success in delivering a world-class system the foundation for the growth and diversity of the with functional capability for the 2011 hurricane season. Your organization. Our practice and quality management dedication to quality and delivery has been evident, resulting in team, led by our Vice President, Practice and Quality improved public safety and risk reduction.” Management, is committed to developing collaboration —Walter O. Baumy Jr. tools and systems, certified frameworks, and training New Orleans District, US Army Corps of Engineers modules that are strong enough to provide consistent, high-quality project delivery while maintaining the Our IMS, in addition to our strong enterprise system, flexibility required to accommodate our diverse regions collectively helps us to manage our operations effectively and practice areas as well as the ever-changing and creates shared value as it professional services environment. t Aligns critical business processes with strategic objectives t Provides a disciplined, holistic approach to Our formal Integrated Management System (IMS) managing risks provides a disciplined and accountable framework t Supports operational effectiveness for managing risks, quality outcomes, and regulatory t Promotes transparent accountability compliance across the Company. This IMS has been t Provides a competitive differentiator implemented and registered to three internationally t Clarifies expectations for employees and management recognized ISO standards: t ISO 9001:2008 Quality Management Standard – aligns As illustrated in the diagram on the next page, there are four business processes with strategic objectives, provides a distinct components that make up the IMS: business planning disciplined approach to managing risk, and promotes processes, service delivery processes, performance assessment quality outcomes and management transparency processes, and review and improvement processes. t ISO 14001:2004 Environmental Management Standard – promotes the reduction of the At the heart of the IMS is our 9-Point Project Management organization’s environmental footprint and drives (PM) Framework that, along with the more detailed practice regulatory compliance (see page 68) frameworks that exist in some practice areas, clearly conveys t ISO/IEC 20000-1:2005 IT Service Management the steps employees must take to achieve more consistent and Standard – promotes the quality, consistency, successful project outcomes. reliability, and value of information technology services To optimize our backend business processes, in 2012, we plan to upgrade our current Oracle 11i E-Business Suite to the most recent version 12i. This will be the largest upgrade we have undertaken since first implementing Oracle in 2003. We also plan to develop an enterprise-wide Oracle project management system, scheduled for phased implementation in 2013.
30 2011 STANTEC SUSTAINABILITY REPORT BUSINESS PLANNING SERVICE DELIVERY
· Strategic Plan · PM Framework · Core Values Project Delivery Processes 1 Contracting Practices · Enterprise Risk Assessment (Client Agreements, · Carbon Footprint Sub-consultants, Subcontractors) Reduction Targets 2 Project Execution Plan · Business Continuity (Scope, Project Risk Assessment, Management Budget, Schedule, Resources) · Policies 3 Record Control · Employee Orientation 4 Health, Safety & Environmental Risk Assessment QUALITY MANAGEMENT SYSTEM 5 Project Controls & PM Dashboard (ISO 9001: 2008 Certified) 6 Scope Management 7 Quality Assurance Checking 8 Mandatory Peer Review ENVIRONMENTAL MANAGEMENT SYSTEM (ISO 14001: 2004 Certified) 9 Project Close-Out · Regulatory Compliance · Career Development and IT SERVICE MANAGEMENT SYSTEM Performance Review (ISO/IEC 20000-1: 2005 Certified) · Sustainability Report · IT Management Processes
REVIEW & IMPROVEMENT PERFORMANCE ASSESSMENT
· Management Review · Client Feedback Surveys · External Audit · Internal Practice Audit · Improvement Plans
INTEGRATED MANAGEMENT SYSTEMS CREATE VALUE:
· Aligns critical business processes with strategic objectives · Provides a competitive differentiator · Provides a disciplined, holistic approach to managing risks · Clarifies expectations for employees & management · Supports operational effectiveness · Creates scalable foundation for growth · Promotes transparent accountability · Promotes quality outcomes in services we deliver
ISO9001 ISO14001 ISO20000 FS 533134 EMS 570921 ITMS 532347 STANTEC INC. 31 FOCUS ON OUR SHAREHOLDERS
WE BRING VALUE TO OUR SHAREHOLDERS BY MAINTAINING PROFITABILITY, REDUCING RISK, ENHANCING TRANSPARENCY, AND ENSURING THAT WE GROW SUSTAINABLY.
We offer our shareholders a proven track record and the ability Thanks to our financial strength and confidence in our ability to grow while remaining profitable and working towards to generate sustained cash flow, in February 2012, Stantec’s sustainability. Since our founding in 1954, we have achieved board of directors approved a dividend policy and concurrently 58 years of consecutive profitability. declared our first quarterly dividend, payable on April 17, 2012, to shareholders of record on March 30, 2012. Our board Continued financial success enables us to increase our revenue of directors and management are confident in our ability to as well as our workforce by acquiring companies and hiring generate ongoing cash flow from operations, continue to grow new staff, contributing to the overall strength of our economy revenue, and complete strategic acquisitions while providing while satisfying the expectations of our shareholders. We also enhanced shareholder returns. direct some of our profits back into the communities where we work (see pages 62 to 67.) In 2011, gross revenue increased 11.3% to $1.7 billion (from $1.5 billion in 2010). Net income was $102.7 million, and Despite the ongoing challenges of the business environment, in diluted earnings per share increased 9.2% to $2.25 (from 2011 we again delivered solid results. Once more, we ended the $2.06 in 2010), excluding a $90 million noncash goodwill year with a strong balance sheet and an increase in operating impairment in the fourth quarter. Our EBITDA increased cash flows, giving us the flexibility to continue to grow both 5.3% to $195.7 million (from $185.4 million in 2010). organically and through acquisitions. At the same time, we achieved revenue growth and our Earnings Before Interest, For a complete look at our financial statements, see our 2011 Taxes, Depreciation and Amortization (EBITDA) increased. Financial Review. For an overview of our corporate strategy, see our 2011 Business Review. Both of these publications can be found in the Investors/Reports & Financials section of stantec.com.
2011 HIGHLIGHTS
t We were recognized as a Canadian Carbon Disclosure Leader for the second consecutive year. t Our gross revenue increased 11.3% to $1.7 billion. t We completed our 58th year of uninterrupted profitability.
32 2011 STANTEC SUSTAINABILITY REPORT GROSS REVENUE EBITDA
07 07 08 08 09 09 10 10 11 11 $0 600 1,200 1,800 $0 50100 150 200
NET INCOME DILUTED EARNINGS PER SHARE
07 07 08 08 09 09 10 10 11 11 $0 40 80 120 $0 0.60 1.20 1.80 2.40
Net Income Net Income before goodwill impairment EPS - Diluted EPS - Diluted before goodwill impairment
All charts represent millions of Canadian dollars, except for diluted EPS. 2011 and 2010 numbers are in compliance with IFRS. Prior years are not restated but are reported under CGAAP.
STANTEC INC. 33 SOCIALLY RESPONSIBLE INVESTMENT
GROSS REVENUE We regularly respond to requests for environmental, social, and governance information from the investment $1.7 community. By responding to these requests, Stantec shares become eligible for inclusion in stock indices and portfolios BILLION that screen based on socially responsible investing (SRI) criteria. Stantec shares have been included in several SRI stock indices and portfolios.
For example, since 2007, Stantec has been included in the Jantzi Social Index (JSI). Compiled and maintained by Jantzi Sustainalytics, the JSI is a socially screened, market- capitalization-weighted common stock index modeled on CANADIAN the S&P/TSX 60. It is a select list of Canadian companies CARBON DISCLOSURE that pass a set of broadly based environmental, social, and governance rating criteria.
LEADER We continue to enhance our ability to disclose pertinent sustainability-related information to assist the growing group of investors who apply SRI screening criteria to their portfolios.
COMPLETED 58th YEAR OF UNINTERRUPTED PROFITABILITY
34 2011 STANTEC SUSTAINABILITY REPORT CARBON DISCLOSURE
We recognize that to develop an effective greenhouse Climate change also presents opportunities for increased gas (GHG) reduction strategy, it is essential we are able demand for many of our services, such as GHG emission to accurately measure our emissions. This is why we inventories and management plans; GHG verification; climate have devoted significant effort over the past few years to change vulnerability assessments and adaptation strategies; creating a sophisticated carbon management system. We energy modeling, auditing, and analysis; design and retrofit publicly disclose our emissions by responding to an annual of energy-efficient and climate-resilient facilities; renewable questionnaire from the Carbon Disclosure Project (CDP). energy production; sustainable community planning; and air Our disclosure on 2011 performance was our fourth quality management. CDP report. In 2011, Stantec was selected for the CDP’s Canadian Carbon The CDP is an independent, not-for-profit organization Disclosure Leadership Index (CDLI) for the second year in that holds the largest database of primary corporate a row, based on our disclosure for the 2010 reporting year. climate change information in the world. Since 2003, The CDLI includes the leading 10% of companies (20) from the CDP has been asking corporations to measure and the Canada 200, ranked by carbon disclosure score. Stantec disclose their GHG emissions, assess the potential risks ranked #6 out of the top 20 Canadian leaders. The carbon and opportunities that climate change presents to their disclosure score represents the quality and comprehensiveness organization, and report on emissions reduction strategies. of individual company responses, measuring both Signatories to the CDP include 655 institutional investors the quantity and depth of information provided. with combined assets of US$78 trillion. In 2011, more than 3,700 of the world’s largest companies (including 81% of For more information about the CDP or to view Stantec’s the Global 500) responded to the CDP questionnaire. In response, visit www.cdproject.net. Canada, the CDP request is distributed to 200 of the largest Canadian corporations as defined by market capitalization, known as the Canada 200.
As part of our report to the CDP, we assessed the potential risks and opportunities presented to our Company by climate change. For Stantec, climate change poses risks including 1. an increased likelihood that our projects will be interrupted or delayed because of unanticipated weather or environmental conditions or disruptions in material supply chains, and 2. an increased underestimation of project costs, along with higher operational costs, resulting from inflated prices for increasingly scarce resources.
STANTEC INC. 35 FOCUS ON OUR CLIENTS
WE BRING VALUE TO OUR CLIENTS BY PROVIDING FOCUSED PROJECT SOLUTIONS THAT ARE ECONOMICALLY VIABLE, SOCIALLY RESPONSIBLE, AND ECOLOGICALLY CONSCIENTIOUS.
We support public and private sector clients in a diverse range We can add value for our clients by augmenting traditional of markets at every stage, from the initial conceptualization and technical solutions with enhanced sustainability elements, financial feasibility study to project completion and beyond. and because of our technical expertise, we can address Continually striving to balance economic, environmental, and sustainability challenges more strategically, thus bringing social responsibilities, we are recognized as a world-class leader sustainability “down to earth.” Through provision of new and innovator in the delivery of sustainable solutions. sustainability services, we can open up additional dimensions in existing client relationships and engage with clients at a We excel in sustainable design because of our ability deeper, more strategic level. to provide integrated, multidisciplinary consulting services— from developing strategic policies and programs for Growing our sustainability business not only makes sense, businesses and communities, to offering infrastructure design, it is also the right thing to do. As global resources continue commissioning, and monitoring—at every scale of built, to deplete rapidly and populations continue to climb, natural, and organizational environments. We are committed organizations around the world are expected to take greater to sustainability and encouraging responsible stewardship in responsibility for their sustainability impacts. To ensure every area of practice and across the value chain. health and prosperity for everyone, we must all do our part to reduce resource use, increase resource efficiency, and promote While sustainability concepts have long been incorporated social equity. in the services that we provide, sustainability planning and sustainable design have become much more systematic in recent years. Municipalities, government agencies, and firms, including many of our clients, are more frequently assessing the sustainability of their operations and implementing performance improvement strategies. As the market for focused sustainability services continues to grow, we are well positioned to compete for these projects.
2011 HIGHLIGHTS
t We were accredited by the American National Standards Institute for GHG verification under ISO 14065 t Our Sustainable Development team received double honors at Green Living Enterprise’s inaugural Awards for Excellence in Corporate Responsibility t To support new client services, our internal research and development fund was increased by 50%, up to $450,000
36 2011 STANTEC SUSTAINABILITY REPORT SUSTAINABLE DEVELOPMENT
To meet the evolving needs of our clients, in 2009, we challenges. Creation of this group was one more step in established a Sustainable Development group, which our evolution toward becoming a leading sustainability is responsible for coordinating and growing Stantec’s consultancy and continues to enhance our ability to sustainability business. Professional sustainability services advance the sustainability goals of our valued clients. are inherently multidisciplinary, with most sustainability projects involving one or more of our conventional Our efforts to build and enhance Stantec’s sustainability practice areas combining their services with specialized services are organized around seven unique client sustainability expertise to offer something in a unique opportunity areas, listed below, each of which targets a way. Our core Sustainable Development group links to key multidisciplinary sustainability issue that spans and professionals and centers of expertise throughout Stantec advances all of our traditional or emerging services. to access, integrate, and finely match teams to meet client
STRATEGIC SUSTAINABILITY SERVICES NATURAL SYSTEMS Drawing on our business planning and management Stantec professionals provide assessment, planning, disciplines, we help organizations integrate corporate design, ecological engineering, reporting, and monitoring and sustainability objectives spanning governance, related to natural systems as the primary means to protect, strategy, communication, reporting, stakeholder enhance, or reclaim ecological integrity, biodiversity, and engagement, community investment, and ultimately carrying capacity. top-line and bottom-line excellence. BUILDING PERFORMANCE SUSTAINABLE COMMUNITY AND LAND PLANNING We offer architecture and engineering solutions to advance Applying our broad community, regional, and urban our clients’ building performance objectives through planning and consultation experience, we offer integrated leading-edge design, modeling, policy development, or topical sustainability planning solutions to urban and auditing, commissioning, measurement, verification, and rural communities. evaluation.
CLIMATE CHANGE WATER Through a wide range of technical and advisory services, Recognizing the importance of our water resources and we address challenges associated with climate change, the challenges we all face to protect this precious resource, including GHG emissions quantification and verification, we apply our broad expertise to help our clients proactively mitigation planning, and adaptation strategies. make complex decisions regarding water conservation, treatment, and management. ENERGY AND RESOURCE MANAGEMENT We provide technical services for the assessment, planning, design, and implementation of alternative, renewable, or district energy, and other integrated resource management initiatives.
STANTEC INC. 37 These sustainability client opportunity areas are advanced In 2011, Stantec’s Sustainable Development team received and coordinated by Integrated Sustainability Services teams double honors at Green Living Enterprise’s inaugural drawn from a multidisciplinary group of professionals Awards for Excellence in Corporate Responsibility, across the Company. Given the geographical distribution which celebrate corporate Canadians for outstanding and diversity of these teams, efforts are ongoing to work and dedication towards creating sustainable and determine how to most effectively support them and ethical practices in business. Marty Janowitz, Stantec leverage their potential. Vice President, Sustainable Development, captured an individual award for team leadership in the category Stantec is primarily focused on providing solutions of large companies in the financial, insurance, and that, in many cases, contribute to building more professional services industries. Stantec’s Sustainable sustainable societies, and we have a longstanding focus on Development team received an honorable mention in sustainability in all of our various disciplines. However, the same category. Judging was based on leadership and as described on page 37, we have recently made it a innovation, performance and results, and process. priority to develop new sustainability-oriented services “These are actually awards for our exceptional Stantec in all of our disciplines. We have been exploring options team, including the core Sustainable Development team to better gauge the growth of these emerging specialties and our many collaborators in departments and offices and, in 2010, we established a preliminary mechanism across the company,” says Marty. “Our team has shown for defining and tracking these uniquely designated tremendous commitment and creativity in moving the sustainability projects. We set a goal for 2011 to increase company towards sustainability.” our gross revenue from such sustainability projects by 50 percent compared to 2010, up to $7.1 million. However, Although we made definite progress in 2011 in increasing in 2011, changes to the organization as well as to financial the coordination of sustainability services across Stantec, tracking systems associated with sustainability reduced there is still much room for improvement. Building a our potential to gather reliable data for these projects. globally integrated sustainability practice will continue Therefore, despite informal indications of continued to be a priority through 2012 and beyond. growth in this area, only $6.4 million in gross revenue from such projects were explicitly recorded in 2011. In 2012, we will explore alternative methods for better defining and thus tracking our sustainability business pursuits and better understanding associated financial implications.
In 2011, Stantec was awarded formal accreditation by the American National Standards Institute (ANSI) for GHG verification under ISO 14065. The ANSI certification is applicable to a broad spectrum of industries and provides accreditation for verifiers such as Stantec seeking to participate in a wide range of GHG programs and registries. Stantec provides services to clients that include assisting with the development of GHG emissions inventories in preparation for a formal verification by a third party, or acting as a third party to formally verify the client’s GHG emission assertions. As part of the ANSI accreditation process, Stantec developed an in-house GHG Management System, which we have applied both internally and with several clients to support improved GHG management, reduction, and disclosure.
38 2011 STANTEC SUSTAINABILITY REPORT LEADERSHIP IN ENERGY AND ENVIRONMENTAL DESIGN
One of our strengths is designing leading-edge, high- designed a new terminal for the Winnipeg International performance sustainable buildings that meet or exceed Airport, the first airport terminal in Canada to target LEED the standards of Leadership in Energy and Environmental certification. We have also worked on several ground- Design (LEED)—a rigorous, independent, third-party breaking, “beyond LEED Platinum” net-zero energy and rating program that recognizes buildings for their living buildings including the U.S. Department of Energy’s incorporation of green design principles. National Renewable Energy Lab (NREL) Research Support Facility in Golden, Colorado. Stantec has an industry-wide reputation for green building design and one of the largest integrated building design In addition to our work on LEED projects, we are helping teams in North America. Over the past three years, the to further develop the LEED standard. Stantec staff serve number of our employees with LEED accreditation has as faculty members on the Canada Green Building Council increased from 457 in 2009 to 648 in 2011. Over the (CaGBC), providing training in LEED products, as well same period, the number of LEED-certified projects we as on Technical Advisory Groups for the CaGBC and the have worked on has almost doubled from 90 to 160, and United States Green Building Council, providing input for hundreds more projects are currently LEED registered the development of new LEED standards and programs. (awaiting certification).
Stantec has achieved certifications for a wide variety LEED-ACCREDITED PERSONNEL AND of projects under a range of LEED rating systems. We LEED-CERTIFIED PROJECTS AS OF YEAR-END contributed to the first phase of the Dockside Green 90 mixed-use development project in Victoria, British 09 457 Columbia, which earned a LEED Platinum designation 10 150 with a world-record score of 63 out of 70 points. We 725 160 11 648 0200 400 600 800
LEED-certified projects completed LEED-accredited professionals
FOCUS ON OUR PEOPLE: Marty Janowitz
Stantec’s sustainability initiatives are led by Marty Janowitz, Vice President, Sustainable Development. In 2011, Marty was named one of Canada’s Clean50 Outstanding Contributors to Clean Capitalism. Selected by Delta Management Group as one of a group of 50 individuals, he was recognized for his significant contributions to advancing the cause of sustainability and clean capitalism in Canada. In collaboration with other award winners, Marty contributed to producing 50 great ideas that will help accelerate Canada’s ability to become a more sustainable society.
STANTEC INC. 39 RESEARCH AND DEVELOPMENT
Effective research and development will keep Stantec on Reducing Emissions by Reducing Trips the leading edge of new technology and emerging services, While many of Stantec’s research projects are science while building relationships with academic and industry and engineering experiments, some also explore social partners. We have created an internal Research and innovations that can help to accelerate the transition to Development (R&D) Fund to support priority initiatives sustainability. One such project funded in 2011 focused that can improve our competitiveness. In 2011, this fund on developing a Transportation Demand Management was increased by 50%, up to $450,000 from $300,000 (TDM) strategy for three of our own offices in the in 2010. Metro Vancouver region. In 2012, the team will survey the commuting habits of Stantec employees and then In 2011, research and development funding was allocated will engage with them to determine the key barriers to to several innovative projects, all of which are expected to increasing use of transportation modes with a reduced be complete by the end of 2012. environmental impact. The intent is to create an implementation plan and monitoring framework, and Learning How to Care for Bears then to implement initiatives to reduce the number of One environmental monitoring project that received R&D trips made by single-occupant vehicles. Another goal of funding may help to conserve grizzly bear populations this project is to create a modeling tool we can use to assist across British Columbia. Our research team developed a clients pursuing TDM strategies. noninvasive technique to determine which factors put the bear populations at greatest risk. By analyzing bear hair It is important for our professionals to stay up-to-date on to see what metals were present, they could subsequently the latest research in their field, and we provide support assess diet, contaminant exposure, and health risks in for them to do so. In 2011, Stantec subscribed to several grizzlies. This breakthrough advances Stantec’s position in online databases specializing in scholarly research ecological protection science. articles focused on sustainability. Making current and high-quality technical literature available at no cost to Power Not Gone with the Wind all Stantec employees is one way that we are supporting Another project allocated funding in 2011 was an employee awareness of and involvement in leading-edge alternative power infrastructure project. Stantec is sustainability research. participating as a consultant in PowerShift Atlantic, a joint research and development project that aims to determine how utilities can more effectively integrate renewable energy sources such as wind, whose power generation capabilities can fluctuate more than traditional energy sources. PowerShift is investigating whether one solution may be to shift patterns of energy consumption through load control.
40 2011 STANTEC SUSTAINABILITY REPORT IN FOCUS: GOING RETRO
Stantec is helping Maxxam Analytics achieve its sustainability goals
RETROCOMMISSIONING noun a systematic investigation process for improving or optimizing a building’s operation and maintenance.1
Retrocommissioning is one of several sustainability- Stantec’s Sustainability team delivered a comprehensive related services Stantec provides to Maxxam Analytics, final report to Maxxam, which established environmental Canada’s largest independent analytical laboratory services baselines, outlined best practices, and provided company. “We’ve had a long-standing relationship with recommendations in a diverse range of areas, including Maxxam, having used their labs for environmental testing t Operations (energy, water, waste and hazardous for many years,” says vice president and sustainability material, etc.) lead Marty Janowitz. “We went from client to consultant t Sustainable procurement when Maxxam wanted to improve its environmental t Community involvement and investment performance. We outlined how they might develop a t Accountability and transparency comprehensive sustainability strategy from the ground up.” We have the ability to help Maxxam with the diverse Flash forward eight months and Maxxam had a corporate range of challenges outlined. Following the report, we sustainability mission, vision, policies, and road map; buy- were commissioned to complete detailed energy in from its leadership; and a newly-appointed director of assessments for all their facilities across the country. We’re sustainability. “We worked with Maxxam’s executives at also identifying innovative solutions, such as the latest in the strategic level,” says Marty, “so we were able to get demand control ventilation, LED lighting systems, and inside their thinking to understand where the business high-efficiency boilers and cooling systems, to help them is going rather than just operating as vendors on a reduce energy use. commercial level.” 1 Oregon Office of Energy, Retrocommissioning Handbook for Facility Managers, We then conducted environmental assessments on March 2001 Maxxam’s building portfolio, which includes office and testing facilities across Canada. We audited all building systems at the same time and made recommendations for improved sustainability performance.
FOCUS ON OUR PEOPLE: Paul Marmion
In 2011, the Green Building Certification Institute (GBCI) named Stantec’s Paul Marmion to the inaugural class of LEED Fellows. The LEED Fellow Program is GBCI’s new and most prestigious professional designation that recognizes exceptional contributions to green building and significant professional achievement within the rapidly growing community of LEED Professionals. Paul was among 34 of the world’s most distinguished green building professionals to be selected as LEED Fellows through a peer nomination and portfolio review process.
STANTEC INC. 41 FOCUS ON OUR EMPLOYEES
WE BRING VALUE TO OUR EMPLOYEES BY SAFEGUARDING THEIR HEALTH AND WELL-BEING, INVESTING IN THEIR CAREERS, PROVIDING EQUAL OPPORTUNITIES, AND INSTILLING PRIDE IN THE WORK THEY DO.
To achieve our vision of becoming a top 10 global design Mediacorp Canada Inc. For all of these competitions, employers firm, we need to recruit and retain talented and motivated are evaluated using criteria such as work atmosphere, employee employees. Our people are our most important competitive benefits, performance management, training and skills resource and are essential to driving organizational success. development, and community involvement. We take great strides to ensure that we continually offer a dynamic, challenging, and rewarding work environment. In addition, we were selected as one of Canada’s Top Our employee practices and guidelines mandate fair and Employers for Young People, again by Mediacorp Canada consistent adherence to regulatory requirements and Inc., in recognition of our leading efforts to attract and retain applicable laws, support excellence in business and employee younger employees. This demonstrates that we are providing performance, and reinforce high employee engagement. our young employees with the tools and opportunities to build long, successful careers at Stantec. In 2011, we were proud to be selected for the first time as both one of Canada’s Top 100 Employers by Mediacorp Stantec strives to be one of the top employers to work for Canada Inc. and one of Canada’s Ten Best Companies to Work in every country in which we operate. Our Vice President, For by the Financial Post. Both of these competitions recognize Human Resources oversees all employee matters including progressive and forward-thinking employers that offer terrific turnover, benefits, diversity and inclusion, and career career advancement opportunities together with leading-edge development and training. employee perks and benefits. We were also recognized for the third consecutive year as one of Alberta’s Top 50 Employers by
2011 HIGHLIGHTS
t Stantec was selected for several top employer awards, including Canada’s Ten Best Companies to Work For t Our wellness program won two ClearAdvantage corporate wellness program awards in the US t Stantec was one of the founding signatories of the Legal Leaders for Diversity and Inclusion initiative t We initiated an “Emerging Leaders” program for employees with promising leadership potential
42 2011 STANTEC SUSTAINABILITY REPORT WORKFORCE AND TURNOVER
Stantec’s workforce is primarily made up of permanent, full-time employees, the majority of whom are professionals or technicians. Our number of in-house employees as of the end of 2011 was 10,819, a 6-percent increase as compared to 10,237 at the end of 2010. There were 533 contract employees that also supported our operations, bringing our total employee base to 11,352. Of our in-house employees, only 8 percent are on fixed- term or temporary contracts, and the remaining 92 WORKFORCE BY REGION percent are on indefinite contracts. In addition, only 772 (7 percent) of our in-house employees are part-time, 09 61.3% 38.5% 0.2% working less than 37.5 hours a week, and the remainder 10 55.3% 41.5% 3.2% (93 percent) are full-time. In total, 58 percent of our 11 57.0% 40.3% 2.7% employees were located in Canada and 39 percent were in the US, with less than 3 percent of our employees 03,000 6,000 9,000 12,000 based internationally. Canada US International
2011 WORKFORCE BY REGION, EMPLOYMENT CONTRACT, AND GENDER
Permanent Temporary Grand Location Employees Employees Contractors Total Total Percentage Female Male Female Male Female Male Female Male Canada 2,002 3,728 126 307 65 361 2,193 4,396 6,589 58.1% US 1,144 2,861 86 268 18 84 1,248 3,213 4,461 39.3% International 64 176 16 41 1 4 81 221 302 2.6% TOTAL 3,210 6,765 228 616 84 449 3,522 7,830 11,352 100.0%
This table includes inactive employees,* thus the numbers differ slightly from those published in our 2011 Financial Review
*For a definition of this and other terms, see the Glossary on page 90
STANTEC INC. 43 Stantec values its employees and tries to retain its talent as much From 2010 to 2011, turnover rates for employees under age 30 as possible. Before turning to layoffs, we review alternatives increased almost 6 percentage points, which we largely attribute including job sharing, reduced work weeks, relocation of to an improved North American economy and, thus, more employees, temporary leaves, and appropriate access to opportunities. Turnover rates for employees in our international government unemployment benefits programs to offset part- locations increased significantly from 9.5 percent in 2010 to 48.2 time employment. We regularly monitor turnover* trends percent in 2011. This increase was expected as we realigned our across regions, age groups, and gender, so that we can target international workforce in response to extremely challenging improvement for groups with higher voluntary turnover. economic conditions.
We achieve much of our employee growth through the acquisition One key tool for improving staff retention is our annual career of professional consulting services firms. This type of growth is development and performance (CDPR) review process. By typically accompanied by higher staff turnover in the first three helping to align employee career goals with organizational years following the completion of an acquisition. goals, it can increase employee engagement and thus reduce voluntary turnover. For more information about our CDPR Our Canadian employee turnover rates have continued to decrease program, see page 54. Other key tools for improving staff over the past three years, with our 2011 rate remaining relatively retention include supervisory and leadership development, stable at just under 16 percent. Our US employee turnover rate business unit action plans, and exit interviews. Our annual increased slightly from 13.9 percent in 2010 to 15.5 percent in employee survey is a critical tool for measuring staff 2011, though it remains substantially lower than the 28.5 percent engagement and holding leadership accountable for turnover rate we experienced in this region in 2009. addressing the reasons behind voluntary employee turnover.
*For a definition of this and other terms, see the Glossary on page 90
44 2011 STANTEC SUSTAINABILITY REPORT 2011 TURNOVER FOR NEW EMPLOYEES
New Employee Hires Entering Stantec New Employee Hires Leaving Stantec
Number % of total employees Number % of new hires
Breakdown by Age Under 30 443 25.0% 35 7.9% Age 30 to 50 632 11.6% 60 9.5% Over 50 176 6.4% 21 11.9% Breakdown by Gender Female 413 12.8% 40 9.7% Male 838 12.3% 76 9.1% Breakdown by Region Canada 890 15.5% 82 9.2% US 275 7.0% 26 9.5% International 86 23.8% 8 9.3% TOTAL 1,251 12.5% 116 9.3%
EMPLOYEE TURNOVER BY YEAR
2009 2010 2011 Number of % of total Number of % of total Number of % of total employees employees employees employees employees employees Breakdown by Age Under 30 251 15.7% 234 13.5% 339 19.1% Age 30 to 50 1,060 22.8% 844 15.9% 976 17.8% Over 50 508 24.3% 338 13.5% 357 12.9% Breakdown by Gender Female 600 22.0% 498 16.1% 569 17.7% Male 1,219 21.8% 918 14.2% 1,103 16.2% Breakdown by Region Canada 898 17.6% 840 15.9% 892 15.6% US 909 28.5% 547 13.9% 606 15.5% International 12 44.4% 29 9.5% 174 48.2% TOTAL 1,819 21.8% 1,416 14.8% 1,672 16.7%
STANTEC INC. 45 DIVERSITY AND EQUAL OPPORTUNITY
We are committed to providing a working environment Recruitment and Retention which values diversity and offers equal opportunity. We In an effort to reach a more diverse pool of job candidates, recognize that a diverse workforce will help ensure that we we now post our opportunities on more than 50 diversity have the breadth of talent, perspectives, and experiences job sites. Through our reporting tools, we determine needed to succeed in our global workplace. We aim to which groups of candidates may lie outside of our primary maximize each employee’s potential by creating a productive recruitment pools, then we use this information to support environment in which diverse ideas are respected and diverse our targeted outreach strategy. skills are fully utilized. In 2011, we assigned an employee to the role of Director, Diversity and Inclusion to ensure that due In our competitive job market, we recognize that we attention is paid to this topic. need to play an instrumental role in developing future talent. Stantec is a strong supporter of Women in We support and participate in a variety of diversity and Scholarship, Engineering, Science, and Technology inclusiveness initiatives across the Company. We make efforts (WISEST), which aims to engage and advance women to ensure that our workplaces are accessible for people in science and engineering. We partner with a number with physical disabilities. When feasible, Stantec makes of community organizations to recruit new immigrants. special provisions to accommodate employees with diverse We also support summer programs for youth with the backgrounds and abilities. For example, select offices have National Organization of Minority Architects. a designated quiet room to make it easier for staff to practice religious rites in privacy and comfort during the day. Stantec’s Diversity Awareness and Training flexible work schedules and support for telework facilitate We provide online staff training in Equal Employment employment for parents, the disabled, and the sick or injured. awareness and workplace harassment.
We have been recognized for our efforts by being named as Communications and Engagement one of Canada’s Best Diversity Employers in 2010 and 2012, We continually communicate and engage with employees though we did not win this award in 2011. on the progress of our diversity and inclusion initiatives.
Our diversity and inclusion strategy is focused on strengthening our processes in the following areas: t Recruitment and retention t Diversity awareness and training t Communications and engagement t Supplier diversity
HARASSMENT AND DISCRIMINATION POLICY
Stantec prohibits harassment or discrimination of an employee on the basis of characteristics such as race, sex, gender, color, creed, religious beliefs, citizenship status, national origin, place of origin, age, marital status, sexual orientation, or physical or mental disability. The Company is committed to creating and maintaining a working environment that is free of such objectionable and disrespectful conduct. Harassment or discrimination of or by employees, clients, or visitors of Stantec shall not be tolerated. Any person who engages in harassment while acting as an employee of Stantec or while at a Stantec workplace is in violation of this policy. The term “workplace” includes both Stantec premises and off-site locations.
46 2011 STANTEC SUSTAINABILITY REPORT Supplier Diversity Stantec is committed to supporting small and diverse businesses The diversity and demographics of our workforce can shift in the communities in which we work. For more information on significantly over time due to new acquisitions. Over the our supplier diversity program, see pages 56 to 57. past three years, the percentage of Canadian employees from minority groups increased slightly, from 14.5 to 15.5 percent. Below are some examples of our recent diversity initiatives. Over the same period, the percentage of US employees from t In 2011, Canada’s general counsel community launched ethnic minority groups decreased from 14.0 to 12.4 percent. Legal Leaders for Diversity and Inclusion, an initiative to promote diversity. Stantec’s Vice President and Corporate Over the past three years, the percentage of women in Counsel signed the pledge, making us one of over 40 management positions has increased, while the percentage founding signatories and publicly demonstrating our of visible minorities has decreased and the percentage of commitment to diversity. disabled people has remained relatively constant. Over the t Our staff has been involved in attending national same period, we have seen a significant increase in the conventions, recruiting, and participating in activities percentage of managers between age 30 to 50, along with with organizations including the National Society of Black a corresponding significant decrease in the percentage of Engineers, the Society of Hispanic Professional Engineers, managers over age 50. This is likely due to increased retirement and the Society of Women Engineers. rates because of an aging workforce in North America, which t To support diversity hiring initiatives, we have underscores the importance of succession planning. significantly increased our involvement with organizations such as the Edmonton Region Immigrant We believe that having management and leadership groups Employment Council and the Alberta Association that are more representative of our communities is important for Community Living (AACL). The AACL is a because it demonstrates to employees that upward mobility family based nonprofit federation that advocates for at Stantec is based on ability. We currently have two women meaningful community inclusion on behalf of children on our 19 member Executive Leadership Team as well as two and adults with developmental disabilities and their women on our nine-member board of directors. While we families. Stantec has been actively involved with AACL recognize that gender balance and workforce diversity are through the hiring of five persons with developmental industry-wide challenges, Stantec is proactively working to disabilities in our Edmonton, Alberta, office. increase the representation of women, the disabled, and people t In Canada, Stantec participates in the Employment Equity from minority groups at senior management levels. program administered by the federal government.
CANADIAN WORKFORCE BY MINORITY US WORKFORCE BY MINORITY GROUP MEMBERSHIP GROUP MEMBERSHIP 09 09 10 11 10 0 2% 4% 6% 8% 10% 12% 14% 16%
American Indian or Alaska Native 11 Asian Black or African American 0 2% 4% 6% 8% 10% 12% 14% Hispanic or Latino Native Hawaiian/Other Pacific Islander Aboriginal Peoples Two or more races Persons with Disabilities Visible Minorities
STANTEC INC. 47 MANAGEMENT POSITIONS BY DIVERSITY INDICATORS
2009 2010 2011
Frontline Middle Senior Frontline Middle Senior Frontline Middle Senior TOTAL TOTAL TOTAL Manager Manager Manager Manager Manager Manager Manager Manager Manager
Breakdown by Age Under 30 0.4% 0.2% 0.0% 0.3% 0.8% 0.2% 0.0% 0.6% 0.8% 0.0% 0.0% 0.5%
Age 30 52.0% 30.0% 21.6% 44.4% 64.5% 43.5% 27.9% 56.5% 63.7% 42.4% 23.4% 55.6% to 50 Over 50 47.6% 69.8% 78.4% 55.3% 34.8% 56.3% 72.1% 42.9% 35.5% 57.6% 76.6% 43.9% Breakdown by Minority Group Membership Female 18.3% 6.2% 4.9% 14.3% 20.2% 8.9% 5.3% 16.2% 20.4% 9.9% 4.5% 16.6%
Visible 11.0% 4.8% 3.9% 8.9% 8.1% 4.7% 4.4% 6.9% 7.6% 5.2% 3.6% 6.7% Minority Disabled 0.8% 0.6% 0.0% 0.7% 0.6% 0.6% 0.0% 0.6% 0.6% 1.0% 0.0% 0.7%
Veteran – – – – – – – – 1.9% 2.1% 3.6% 2.0% (US only)
All data excludes contractors. Disabled and visible minority status is currently tracked in the US and Canada only. Visible minority status includes all racial and indigenous groups.
48 2011 STANTEC SUSTAINABILITY REPORT OCCUPATIONAL HEALTH AND SAFETY
We are committed to providing and maintaining a The HSE program applies to all employees, including healthy and safe workplace and to responsibly managing independent contractors, working for all Stantec the environmental aspects of our business. As such, our operating companies. All workers, with respect to the Health, Safety & Environment (HSE) program is intended services they provide on behalf of Stantec, are responsible to reduce risks to people, the environment, and our and accountable for health, safety, and environmental business. The program is designed to help workers identify performance and are expected to understand and comply and take the appropriate steps to evaluate and manage with health, safety, and environmental practices. hazards, risks, and opportunities. Despite many challenges, we made several improvements Our corporate HSE team, led by our HSE Director, works to our HSE program in 2011: collaboratively with our various practice areas with the t We updated the Corporate HSE Manual to represent goal of reducing our recordable incident rate to zero. We a more comprehensive safety system and to better have a regional safety and environment coordinator in comply with applicable legislative and regulatory each of our four major operating regions. Local Office requirements. Safety and Environment Coordinators (OSECs) facilitate t We developed and implemented an OSEC training and the day-to-day operation of the HSE program by collecting qualification program and distributing information and encouraging the use of t We developed a comprehensive Workstation effective practices. We also have a workers’ compensation Ergonomics program to address an increase in injuries claims coordinator for both Canada and the United States. associated with employee workstations. This included Ultimate responsibility for HSE matters rests with our Vice a Workstation Ergonomics Safe Work Practice as well President, Practice & Quality Management. as an online tutorial designed to guide employees through the steps necessary to minimize ergonomic The following key elements comprise Stantec’s hazards. HSE program: t In an effort to increase safety awareness and t Risk and hazard identification. This program engagement at a local level, Office Safety Committees element includes task inventories, job hazard were created at the Irvine, California, and Lexington, analyses, identification of environmental aspects and Kentucky, offices. These offices will be used to test potential impacts, site assessments, analyses of client safety culture programs and systems for potential requirements, and inspections. deployment at other sites. t Evaluation. This element involves analysis of t We developed a Subcontractor Prequalification System risks associated with each hazard or impact, legal designed to evaluate and preapprove subcontractors reviews, identification of items requiring action, and and subconsultants, significantly reducing potential establishment of priorities. liability associated with unsafe job performance. t Management and control. This element includes t Planning—determining objectives, setting targets, preparing action plans, writing procedures, developing emergency response plans, and identifying required resources t Implementation—assigning appropriate responsibilities and resources for implementing plans and communicating required information t Monitoring and measurement—reporting incidents, conducting investigations, maintaining records and statistics, and preparing reports to leadership
STANTEC INC. 49 HSE INCIDENT RATE SUMMARY
Canada US All Regions Lost Time Lost Time Lost Time Year TRIR* LTIR* TRIR LTIR TRIR LTIR Days* Days Days 2009 125 0.84 0.37 71 0.62 0.06 196 0.74 0.23 2010 14 0.78 0.12 100 0.72 0.13 114 0.75 0.12 2011 230 0.68 0.26 23 0.92 0.14 253 0.79 0.21
Our total recordable injury rate (TRIR)* increased from t Streamline our incident reporting and management 0.75 in 2010 to 0.79 in 2011. Over the same period, our lost system – We will develop an online dashboard to measure time injury rate (LTIR)* increased from 0.12 to 0.21. These both leading and lagging indicators, to better enable increases in injury rates are attributed in part to the increase in focused and directed safety improvement plans. size and complexity of the organization over the same period. t Develop a Safety Management System – We will develop We anticipate that injury rates will decrease as newly acquired a risk-based Safety Management System using the employees become more familiar with Stantec’s HSE program. internationally recognized OHSAS 18001: 2007 standard as a guide, to enable a more focused approach to protecting In 2011, our HSE staff worked closely with nine offices that our employees. accounted for 52 percent of all injuries in 2010 in order to develop and implement site-specific safety improvement plans. We will also improve our safety orientation program for new These offices subsequently reduced their recordable injuries by employees to better educate them about HSE responsibilities 50%, from 26 in 2010 to 13 in 2011. In 2012, a similar strategy and program requirements. will be applied to facilities that accounted for the greatest percentage of injuries in 2011. In 2012, our target is again For more information about Stantec’s HSE program, to reduce our TRIR to 0.60. see stantec.com under About/Health and Safety.
Another goal for 2011 was to have all supervisors complete a *For a definition of this and other terms, see the Glossary on page 90 learning module on HSE rights and responsibilities. Over 650 employees participated in this training in 2011, bringing total attendance up to almost 2,850 in the past 2 years. This included 100% of all senior leaders at the vice president level or higher. INJURY RATES We also rolled out a new course on HSE hazard recognition, assessment, and control, which almost 130 employees attended 0.9 in 2011. 0.8 0.7 In 2012, the HSE team will focus on determining the exact 0.6 issues that expose our employees to risk of injury, thus enabling 0.5 a more direct approach to improved safety performance. To 0.4 accomplish this, we will undertake the following initiatives: 0.3 t Improve hazard recognition – Through focused training 0.2 and an increased HSE Awareness and Communication 0.1 program, we aim to increase the ability of our employees 0.0 to recognize the hazards associated with the work they 0910 11 do, empowering them to take actions required to protect Total Recordable Injury Rate (TRIR) themselves. Lost Time Injury Rate (LTIR)
50 2011 STANTEC SUSTAINABILITY REPORT EMPLOYEE BENEFITS
In order to attract and retain top talent for Stantec to We offer several types of group retirement plans with achieve its strategic goals, we provide a comprehensive a wide variety of investment options. This includes benefits plan for our staff. We continually monitor our retirement savings plans in Canada, the United States, benefits program, making regular enhancements to ensure Puerto Rico, Barbados, and the UK, all for which Stantec that it remains competitive in our industry. To facilitate provides employer-matching contributions. We also have acquisition integration and employee relocations, we strive stock purchase plans in Canada, the US, and Puerto Rico. for consistency and quality of care of our programs across each of our operating countries. Our benefits team, led by Through our Awards of Excellence program, we formally our Director, Compensation & Benefits, works together recognize and reward employees who have demonstrated with our outside partners and regional human resources excellence in their work and have, therefore, made representatives to support these programs. an outstanding contribution to the success of our organization. Employees can nominate their coworkers In Canada and the US, our benefits program is standard or staff in one of seven categories including “One Team”, for all full-time employees as well as for permanent design and technical, marketing and business development, part-time employees who work at least 20 hours a week. managerial, customer service, asset management, and In other countries of operation, program eligibility is health and safety. Since the program’s launch in 2010, we consistent with the local market and culture. have distributed over 500 awards to deserving individuals and teams, often through on-site award presentations. We offer comprehensive medical, vision, and dental care At the end of 2011, for the first time, we also selected coverage for employees and their eligible dependents. In the “best of the best” winners for each category, who addition, our voluntary wellness program provides access will be recognized at our annual meeting in 2012. Our to free information, tools, and support programs to help Awards of Excellence program is integral to building and employees and their families improve their health and strengthening a culture of excellence in our organization. wellbeing. By participating in learning opportunities and completing various tasks and challenges, employees can In 2011, our wellness program won two ClearAdvantage earn incentives in the form of reduced medical premiums corporate wellness program awards in the US. We were in the United States and additional health and wellness the runner up out of 44 entrants in the Wellness Program spending account credits in Canada. These accounts give Participation category based on the program’s 98-percent employees the flexibility to spend benefit dollars where participation rate among US staff. We also placed first they need them most. Spending account dollars can be in the Overall Results category based on multiyear data used to pay for approved healthcare expenses that may not collected on our US workforce that showed be covered under the Company’s group benefits plan, to t Significant improvements in employees’ baseline reimburse paid premiums, or to pay for things like fitness health memberships or classes, exercise and sports equipment, t Low risk levels of biometric measures such as and sports registration fees. cholesterol, blood pressure, body mass index (BMI), and glucose Stantec also provides an Employee and Family Assistance t Decreased risk for heart disease Program (EFAP), which is a voluntary, confidential t A decline in obesity rates despite a rise in the counseling and referral service available at no cost national rate for employees and fully dependent members of their household. This program is designed to help with personal or work-related problems, pressures, stresses, or concerns. We also encourage staff to use their vacation time to help maintain a healthy work-life balance.
STANTEC INC. 51 For example, from 2006 to 2011, average total cholesterol levels In 2012, we will switch to a Canadian benefits vendor for our US employees reduced from 199mg/dl to 188mg/dl, that offers an online employee self-service model. This will compared to the national average of 203mg/dl. During the same enhance the member experience, improve customer service period, as the national obesity rate climbed from 26% to 34%,2 capabilities, and increase reporting capabilities. the obesity rate for Stantec’s US employees dropped from 27% to 25%. For an overview of our benefits program by region, see the table below. In the 2011 Canada’s Top 100 Employers survey, our health 2 and family-friendly benefits were rated as “very good” by Source: Center for Disease Control and National Institute of Health competition judges.
SUMMARY OF STANDARD EMPLOYEE BENEFITS Benefit Canada US Puerto Rico Panama Barbados UK UAE India Healthcare (Medical, dental, Yes—All Yes—All Yes—All Yes— Yes—All Yes—All Yes—All Yes— vision) Medical only Medical only Disability coverage Yes Yes Yes—LTD; Yes— Yes— Yes Yes Yes STD from Government Government government Maternity / paternity leave Yes Yes Yes Yes— Yes— Yes— Yes Yes Excludes Government Government paternity International business travel Yes Yes Yes Yes Yes Yes Yes Yes (health and emergency evacuation) and expatriate benefits Healthcare navigation and YesNoNoNoNoNoNoNo second opinion service Wellness program Yes Yes Yes No No No No No Flexible Spending Account Yes Yes No No No No No No Life, critical illness, and Yes Yes— Yes— No No Yes— Yes— Yes accidental death and Includes Excludes Excludes Excludes dismemberment insurance Universal Life Critical Critical Critical Illness Illness Illness
Employee and Family Yes Yes Yes No No Yes No No Assistance Program Legal assistance plan Yes Yes Yes No No No No No Retirement plan Yes Yes Yes No Yes Yes No No Stock purchase plan Yes Yes Yes No No No No No
52 2011 STANTEC SUSTAINABILITY REPORT CAREER DEVELOPMENT AND TRAINING
We are committed to having the best-trained, best- We also encourage staff to pursue external learning informed, and best-equipped employees in our industry. opportunities. For example, employees who have To meet these expectations, we provide learning completed one year of full-time employment with Stantec opportunities for our employees to enhance their personal may be eligible for our tuition assistance program, which and organizational effectiveness and to enable them to could reimburse up to 75 percent of the costs of relevant move into management and specialist roles. Stantec’s courses taken on an employee’s own time. In addition, we Learning Services team provides central support for all encourage employees to participate in relevant professional career development and training. and educational activities, including conferences, seminars, and tradeshows, and we support employee involvement in Our online Career Development Center provides professional and industry associations, committees, and resources to help employees identify, plan for, and councils. achieve their career goals. We offer a variety of customized learning programs and tools, including internal courses, Over the past year, the average number of training hours eLearning, and guided reading. Our internal training per employee increased by 11 percent, from 18.9 hours courses cover topics ranging from project management in 2010 to 21 hours in 2011. In 2011, the average number and leadership to marketing and green building of training hours for men was 2.4 hours higher than that design. Courses are typically delivered by employee for women. As expected, training hours were highest for faculty members, thus providing additional leadership employees with the fewest supervisory responsibilities. development opportunities. We also partner with various institutions and associations to provide select internal To achieve our strategic objectives, we must develop and courses that are approved for credit toward continuing maintain a strong foundation of leaders throughout the education requirements for licensed professionals. organization. As the baby boomer generation steps out of leadership and into retirement, it is critical to determine All employees are required to complete our mandatory who is going to fill their shoes. By supporting and new hire orientation, health and safety, and business ethics encouraging learning relationships developed through training programs. Select employee groups are provided mentoring and leadership development, we can ensure that with training in workplace harassment, integrity, and equal the valuable knowledge, experience, and skills of our senior employment opportunity training. We also plan to roll out staff are transferred on to the next generation of Stantec a new anti-corruption module in 2012. In an effort to make employees. training accessible to as many employees as possible, we are developing more eLearning modules.
AVERAGE TRAINING HOURS BY EMPLOYMENT CATEGORY
2009 2010 2011 Female Male TOTAL Female Male TOTAL Female Male TOTAL
Employee (Non-Manager)* − − 16.4 − − 19.2 19.5 23.3 21.9 Frontline Manager* − − 16.2 − − 18.7 19.4 19.2 19.2 Middle Manager* − − 16.1 − − 18.4 14.2 16.2 16.0 Senior Manager* − − 6.1 − − 4.5 4.0 7.0 6.9 TOTAL − − − − − 18.9 19.4 21.8 21.0
*For a definition of this and other terms, see the Glossary on page 90
STANTEC INC. 53 Our customized leadership development program focuses In 2011, we initiated an “Emerging Leaders” program for young on organizational values, strategic objectives, and communal employees identified as rising stars. Up-and-coming leaders are leadership skills. It is a comprehensive, two-part program that invited to attend Stantec’s Annual General Meeting, participate consists of independent work, classroom instruction, and a in strategy sessions, and network with the Executive Leadership 360-degree review process. This unified approach to leadership Team. Some offices have also developed their own leadership training helps to standardize Stantec’s leadership culture in development initiatives. For example, the Vancouver Leadership accordance with Company values. Our goal is to have at least Development Group (VLDG) is a small, multidiscipline team 80 employees complete this program each year, and in 2011, of 11 young Stantec professionals in our Vancouver, British we exceeded this goal, with 89 employees completing the Columbia, office. Under the guidance of local leadership, they’ve training. In 2011, we developed a learning program to support spent numerous hours, many outside the typical workday, new supervisors. learning about themselves, each other, and Stantec. Through that process they have developed a strong One Team mentality Mentors can offer support, resources, contacts, opportunities, and a better understanding of the potential of the firm. and guidance to help employees reach their long-term career goals. Stantec has a formal Mentorship program that requires We know that career and performance development are a year-long commitment. It includes an orientation for mentors critical for the professional growth of our employees and and protégés as well as a comprehensive Mentor Guide and the organization; therefore, all employees are expected to Protégé Guide to help program participants effectively participate in an annual career development and performance navigate the mentorship process. review (CDPR) process with their supervisor. This is a focused discussion to review work performance during A valuable alternative to formal mentoring is coaching, the past year and develop an action plan to address any a process of providing people with the tools, knowledge, gaps in performance. Employees are also asked to prepare and opportunities they need to develop their skills. Whereas a formal career development plan including short-term mentoring supports long-term career development, coaching and long-term goals, and to set achievable and measurable is focused on shorter-term skill development. Stantec offers an objectives for the following year. This helps to ensure that internal course called Coaching Others, and coaching is also a adequate planning and guidance are in place to assist focus of our leadership development programs. employees in achieving their full potential and enjoying a satisfying and rewarding career with us. In 2011, 93.2 percent of eligible employees completed a CDPR.
PERCENTAGE OF TOTAL EMPLOYEES THAT COMPLETED A CDPR IN 2011 Percent of Eligible Percent that Employee Base Completed a CDPR Female 31.6% 94.2%
Male 68.4% 92.7% TOTAL 100.0% 93.2%
Includes only employees actively assigned during the CDPR period. Excludes employees terminated during the CDPR period as well as new employees with no performance to review.
54 2011 STANTEC SUSTAINABILITY REPORT IN FOCUS: THE START OF SOMETHING GOOD
Stantec is providing young employees with a step up in their careers
Famed American poet Ralph Waldo Emerson said, Employees like Dean recognize the value of mentorship. “Our chief want is someone who will inspire us to be He says “the process of knowledge sharing promotes strong what we know we could be.” At Stantec, that inspiration working relationships, mutual respect, and transparency, all is found through our mentorship and leadership of which benefit the mentee, the mentor, and Stantec.” development programs. Stantec’s mentoring program was evaluated as part of the “Stantec recognizes that leadership is hard work and PhD thesis of David Parkes, chair of the Human Resources requires a commitment from the Company to invest Management Program at Grant MacEwan University. “Stantec in young staff,” says Graham Senft, 32, a sustainability has a well-grounded formal mentoring program,” says consultant and member of the Vancouver Leadership David. “The Company’s program is voluntary, offers learning Development Group (VLDG). “That’s why Stantec works to opportunities for both mentors and mentees, and supports nurture, support, and engage its next generation of leaders. the mentee in well-developed relationship supervision.” Based They understand that effective leadership must on other organizations, David says that Stantec is following be developed deliberately over time. It doesn’t happen best practices in supporting mentee development. His thesis by accident.” concluded that key ingredients in a successful mentoring relationship are feelings of mutual trust and safety, factors Kari Ward, a Transportation project manager based out that are effectively encouraged and supported at Stantec. of Duluth, Georgia, is part of an informal mentoring relationship. For her, the opportunity to cultivate a personal relationship with a trusted individual is priceless. “My mentoring relationship has really helped me on my career path,” says Kari. “I think making that time commitment is so important,” she says.
“Mentoring has been an integral part of my career development,” says Dean Mochrie, a senior project manager in our Rancho Cordova, California, office and a participant in the Emerging Leaders Program. “In the beginning of my career, I would seek out mentors that could provide technical guidance and knowledge. As my career developed, the balance of knowledge sharing shifted from technical to operational guidance. I am now in a position where I get to be on both sides of the mentoring Six of the 11 inaugural members of the VLDG, including (left to right) Graham Senft, Sarrah table, gaining an even deeper operational knowledge of Busby, Emily Dunlop, Alex Hutton, Marc Trudeau, and Tariq Amlani. the company from my superiors, while providing technical guidance for those just starting out in their careers.”
STANTEC INC. 55 FOCUS ON OUR PARTNERS
WE BRING VALUE TO OUR PARTNERS BY DEVELOPING LASTING AND MUTUALLY BENEFICIAL RELATIONSHIPS, BUILDING CAPACITY IN LOCAL COMMUNITIES, AND ENCOURAGING DIVERSITY IN OUR SUPPLY CHAIN..
Stantec is committed to supporting small and diverse businesses in the communities in which we work. SUPPLIER DIVERSITY We believe that these businesses are an economic engine of growth that can augment our expertise and help us The US Congress has passed several laws that require to better support our clients’ needs. When practical, US Federal agencies to establish and meet goals regarding Stantec includes subcontracting opportunities for our inclusion of disadvantaged groups into their supply small and diverse business partners for meaningful roles chain, and agencies thus flow these requirements down on independent tasks that help build their technical to their contractors. Many of our state, municipal, and capacity and enhance their prospects for growth. commercial clients have implemented similar programs. Stantec is, thus, often contractually required to submit a We recognize that sustainable development in Canada’s small business (SB)* subcontracting plan and report on SB North is vital to the nation’s future and key to our utilization. Commitment to support SBs, as demonstrated successful growth. An important part of that growth has through setting and achieving SB utilization goals, is been partnerships with Aboriginal people, communities, therefore becoming a factor during the consultant selection and governments throughout Canada’s North. Through process. Enhancing our supplier diversity strategy can these partnerships, Stantec can better serve our clients therefore give Stantec a competitive advantage in addition and participate in exciting development projects in this to helping us meet our clients’ goals. frontier region. In turn, capacity building is supported through employment, training, and direct investment into Over the past two years, we have been developing a local communities. US Supplier Diversity Program to ensure that we meet SB contract requirements. The program is centrally coordinated by our supplier diversity team and is overseen by our Vice President, US Federal Contracting as well as our Vice President, Human Resources. In 2011, we appointed staff members to the roles of Corporate Supplier Diversity Officer and Supplier Diversity Program Manager. We also developed a Supplier Diversity Policy, which we will consider approving in 2012.
2011 HIGHLIGHTS
t Our total spend for small businesses was $48.6 million, representing 18.6% of our total US spend. t Our total spend for women-owned businesses was $11.9 million, representing 4.6% of our total US spend. t Total revenue for our Aboriginal partnerships was over $13 million.
56 2011 STANTEC SUSTAINABILITY REPORT In 2011, we improved our capacity to properly characterize We took several steps in 2011 to proactively seek out potential our suppliers by enhancing our supplier database. We launched SB subcontracting opportunities. We created a Supplier our enhanced program in November 2011 at the Society of Diversity Program brochure. In April, we hosted a Small American Military Engineers (SAME) National Small Business Business Outreach Forum in Devens, Massachusetts, which was Conference. Prospective vendors are now invited to register well attended. During 2011, Stantec representatives attended or with us by submitting a socioeconomic certification form via exhibited at eight other SB outreach events hosted by various our supplier portal on stantec.com, upon receipt of which agencies or groups. We expect our outreach efforts to increase their status is updated in our systems. Existing suppliers are the percentage of SB suppliers included in our vendor database, requested to certify their socioeconomic information annually. in turn leading to improved SB utilization and increased support of the SB community, which better supports our A “supplier” can be a subconsultant, subcontractor, or general clients’ needs. supplier. SBs can have several disadvantaged* statuses such as veteran-owned, service-disabled veteran-owned, Hispanic In 2012, we will focus on further formalizing and strengthening American-owned, women-owned, HUBZone*, and SBA 8(a) our supplier diversity program, which will include investigating certified.* We accept self-certifications on all statuses except the feasibility of expanding this program to other regions where HUBZone and 8(a), which we verify through the US Small we operate. Business Administration (SBA)* website. At the end of 2011, we had current socioeconomic certifications on almost 1,400 active vendors, which represented around 25 percent of our estimated US supply chain of approximately 5,750 vendors.
Our total SB spend in 2011 was $48.6 million, representing 869 firms and 18.6 percent of our total US spend. Our total 2011 spend for women-owned businesses was $11.9 million, representing 202 firms and 4.6 percent of our total US spend. Women-owned status includes both small and large business enterprises. Total US spend and percentages include US East, US West, and US Americas operating regions, but excludes spend from US corporate groups.
*For a definition of this and other terms, see the Glossary on page 90
STANTEC INC. 57 ABORIGINAL PARTNERSHIPS
As stewards of the environment and their cultural history, Stantec has seven partnerships with Aboriginal groups across Stantec’s Aboriginal Partners maintain an active interest Canada, listed below, to deliver services in their respective in their traditional land and associated development traditional territories and settlement regions. All partnerships projects. By combining the traditional knowledge of are majority Aboriginal owned. Our Managing Principal, these partners with the technical expertise of Stantec’s Aboriginal Partnerships provides operational support and professionals, we create a unique value proposition for guidance to these partnerships. Total 2011 revenue for our clients. Stantec’s Aboriginal partnerships was more than $13 million.
AIVEK STANTEC LP Aivektuuk Inc. (an Inuit company) formed a partnership with Stantec to provide environmental and engineering consulting services within Nunatsiavut, Labrador. Aivek has successful relationships with industry throughout Labrador including ongoing collaboration with the mining industry, and Inuit, provincial, and federal government departments.
TON’ CH DE O DETON’ CHO STANTEC Deton’ Cho Stantec is a partnership between the Yellowknives Dene First Nation’s economic development organization, the Deton’ Cho Corporation, and Stantec to provide full engineering and environmental CO N RPORATIO Deton’ Cho Stantec consulting services throughout the Yellowknives traditional territory (Chief Drygeese Territory) in the Northwest Territories. Deton’ Cho Stantec is one of over 20 partnerships operating under the Deton’ Cho group of companies providing services to a variety of clients throughout the Northwest Territories.
KAVIK-STANTEC INC. KAVIK-STANTEC is a unique blend of Inuvialuit majority ownership and management with respected and experienced northern consulting and community consultation experience. Recognized as a leading environmental impact assessment and protection planning company in northern Canada, KAVIK-STANTEC has expertise in study design, understanding regulatory frameworks, field data collection, public consultation, traditional knowledge studies, analysis, data interpretation, and reporting.
NEEGAN NAYNOWAN STANTEC LP Neegan Naynowan Stantec is a partnership with the Attawapiskat First Nations to provide scientific, engineering, and geosciences services in Northern Ontario, including training and services such as environmental impact assessment, site assessments, environmental monitoring, and sampling. Neegan Naynowan Stantec is conducting various projects for aboriginal communities, government, and resources industries in Northern Ontario.
58 2011 STANTEC SUSTAINABILITY REPORT 1
2
1. KAVIK-STANTEC Inc. | Mackenzie Delta Lands and Offshore 7 3 2. Nunami Stantec LP | Nunavut
4 3. Aivek-Stantec LP | Nunatsiavut 6 5 4. Stassinu Stantec LP | Nitassinan
5. Neegan Naynowan Stantec LP (NNS) | Mushkegowuk Tribal Council Region–James Bay Lowlands, Ontario
6. Nu Nennè-Stantec Inc. | Cold Lake Traditional Territory
Locations of Partnership territories are estimates and should not be considered accurate. 7. Deton’ Cho Stantec | Chief Drygeese Territory
NUNAMI STANTEC LIMITED Nunami Stantec is a majority Inuit-owned consulting company based in Rankin Inlet, Nunavut. Nunami is a partnership between the Sakku Investment Corporation and Stantec, providing environmental science and engineering services to organizations throughout all three regions of Nunavut. Nunami delivers quality services and solutions to clients while providing employment, training, and financial benefit to beneficiaries under the Nunavut Land Claim Agreement.
NU NENNÈ-STANTEC INC. Nu Nennè-Stantec is a partnership between the Cold Lake First Nation (CLFN) and Stantec. This partnership provides environmental and cultural services to clients operating in the CLFN Traditional Territories. The success of the Nu Nennè-Stantec partnership is based on a cross-cultural awareness and integrated approach to assessment and management that integrates CLFN traditional knowledge, conservation ethics, and land stewardship with the strong Western science and regulatory experience provided by Stantec professionals.
STASSINU STANTEC LP Stassinu Stantec is a partnership between Stassinu Services Inc. (SSI) and Stantec that provides environmental sciences and engineering, management consulting, and logistics in Nitassinan, Labrador (Innu Lands). SSI combines Innu knowledge and experience in various environmental and geological studies with extensive experience working in remote field situations, requiring adaptable and flexible skills.
STANTEC INC. 59 IN FOCUS: PARTNERSHIP FOR THE FUTURE
Stantec is planning for the future through a partnership to support Aboriginal youth
For the second consecutive year, Stantec served as the “Stantec has a growing number of projects with Aboriginal exclusive laptop partner for the National Aboriginal clients,” says Shawn Bravender, an associate in Edmonton’s Achievement Foundation (NAAF) Blueprint for the Urban Development group. “This event is a great Future Career Fair, a series of national events designed opportunity to not only get our name out but also inform to introduce First Nation, Métis, and Inuit youth—the Aboriginal youth about who we are and the work we fastest-growing segment of the Canadian population—to do.” Shawn led a workshop entitled “Create Great Places a wide array of career opportunities. More than 35,000 to Live, Work, and Play” in which students participated Aboriginal students from across Canada have attended the in interactive design aimed at exploring why our foundation’s career fair over the event’s 16-year history. communities look the way they do. “It’s always refreshing and intriguing to see how participants think through and At the most recent event, held in October, 2011, in map out their ideal neighborhood,” says Shawn. Yellowknife, Northwest Territories, Stantec participated in the tradeshow, led a career workshop, and contributed In another workshop, Doug Powell, a senior survey $15,000, which included five laptop prizes. At the previous technologist in Edmonton, showed students how three- event in Edmonton, Alberta, Stantec participated in the dimensional laser scanning is being utilized by today’s tradeshow, led three career workshops, and presented a engineer. “The technology got a ‘Wow’ from the students dozen laptops, totaling $15,000, to lucky winners as part when they saw how fast and accurately we can now collect of the sponsorship. data,” says Doug.
1. Doug Powell demonstrating laser scanning to students 1 2 at the NAAF Career Fair Edmonton, Alberta
2. Youth participating in Shawn Bravender’s workshop 3 at the NAAF Career Fair Edmonton, Alberta
3. Kevin Hodgins, Yellowknife managing leader, with one of the lucky laptop winners
60 2011 STANTEC SUSTAINABILITY REPORT STANTEC INC. 61 FOCUS ON OUR COMMUNITIES
WE BRING VALUE TO OUR COMMUNITIES BY DEVELOPING INFRASTRUCTURE IMPROVEMENTS, SUPPORTING ORGANIZATIONS THAT MAKE A POSITIVE IMPACT, AND ENCOURAGING EMPLOYEE VOLUNTEERISM.
Stantec is committed to supporting our communities and In 2011, Stantec was once again included as one of the Best 50 to maintaining and further developing a strong community Corporate Citizens in Canada by Corporate Knights magazine. presence in our key operating regions. We wish to be seen This 10th anniversary report on the state of responsible business as a valued and trusted partner in the communities where in Canada is based on environment, social, and governance we have a presence. indicators. Stantec previously won this recognition in 2007 and 2008. This year Stantec ranked #30 on the list. Stantec belongs to hundreds of industry associations, such as green building councils at the regional and national level and the Design-Build Institute of America. We are also a member of Canadian Business for Social Responsibility, the national body of a worldwide network of businesses committed to corporate social responsibility.
2011 HIGHLIGHTS
t We were selected as one of the Best 50 Corporate Citizens in Canada by Corporate Knights magazine t Cash donations made through our Community Investment program totaled $901,000. t We awarded almost $147,000 in scholarships at educational institutions across North America. t To promote employee volunteerism, we expanded our Dollars for Doers program to all offices.
62 2011 STANTEC SUSTAINABILITY REPORT COMMUNITY INVESTMENT
Our Community Investment (CI) program is focused on supporting growth in local communities through DONATIONS BY YEAR the enhancement of knowledge, prosperity, health, 09 $855,900 and quality of life. Through our CI program, we 10 $797,649 contribute to organizations or programs primarily in 11 $900,639 communities where we have a significant employee $740,000785,000 830,000 875,000 920,000 presence. Our goal is to donate at least 1 percent of our annual pre-tax profits to charitable and not- Includes charitable and noncharitable cash donations paid. for-profit organizations, either through direct cash contributions or services provided in kind. Priority is given to funding endeavors in the following areas: the arts, education, environment, and health and wellness.
1% Dollars for Doers 4% Environment Organizations interested in requesting support from our CI program can submit an online application via stantec.com. 11% Arts Requests are reviewed by regional CI representatives who 36% Health & Wellness work together with regional leaders to determine where to allocate our donations. 2011 DONATIONS Cash donations made in 2011 through our CI program BY FOCUS AREA totaled $901,000, as compared to $798,000 in 2010. This amount represented 1.8 percent of our annual pre-tax profits, almost double our goal of 1 percent. In addition, we made several donations in kind of design services and 44% Education 4% Other other goods. We continue to explore ways to better track and valuate donations in kind so that we can get a more accurate picture of our total annual donations. Includes cash and in-kind donations committed.
STANTEC INC. 63 A key focus area for Stantec’s CI program is education, this initiative, staff who supported a registered charity which accounted for 43.5 percent of our donations in 2011. by either volunteering 25 hours of their personal time or This included 37 scholarships totaling almost $147,000, participating in a group fundraising drive could request a which were awarded at educational institutions across $500 donation to this charity on behalf of Stantec. Piloted North America. in four offices in 2010, this program was rolled out to all of our offices in 2011. In 2011, Stantec supported dozens of 2011 marked the retirement of Ron Triffo, Stantec’s employees at a wide variety of organizations through this former president and chair of the board of directors. program, for a total of over $15,500. To commemorate Ron’s significant contributions to the community, we established the Triffo Scholarship program, To ensure that we maximize our community impact, which celebrates the academic achievement of a dependent it is important to continually revisit our CI strategy. child of a Stantec employee. The $5,000 annual scholarship In 2011, we planned to complete a thorough evaluation will be awarded to a post-secondary student who has of our CI program, including our focus areas, partners, demonstrated success and leadership in the classroom and measurement, and outcomes, in order to develop the community. The first award will be distributed in 2012. recommendations for improvement. Due to a key personnel change, this will now be undertaken in 2012. We participate in several programs that support and In 2012, our new corporate Community Development promote the development of future engineers. For example, Manager will engage with internal stakeholders to we facilitate many mentorship opportunities, partnering explore opportunities to more actively link our CI students with engineering and architecture professionals to activities to our business strategy and corporate help them develop the skills necessary to succeed in their commitments. This may include, for example, education and careers. building or strengthening client partnerships that support our community investment vision. Our Dollars for Doers program encourages employees to invest in their community by promoting employee For more information about our CI program, contact volunteerism and directing community investment dollars [email protected]. towards charities that are important to our staff. Through
FOCUS ON OUR PEOPLE: Melanie Swanson
In Lumbini, Nepal, only 33 percent of students are girls and the literacy rate for girls is a paltry 18 percent—one of the lowest in the world. This motivated the Canadian Engaged Buddhism Association to empower young women by collecting used laptops to set up small computer training centers which provide free training to young girls from village communities. When Melanie Swanson, a telecommunications specialist in our Edmonton, Alberta, office discovered there was no infrastructure in place for the laptops to be used, she resolved to lend her time and expertise. Armed with 11 laptops generously donated by Stantec employees, Melanie traveled to Nepal on a mission to help install computer networks in three schools. She worked tirelessly to install the networks and train the locals on how to maintain them. With construction of these centers, many young Nepalese girls now have the opportunity to attend the most high- tech school in their area. This will make a huge impact in their lives, giving them the skills to gain employment and to break the cycle of poverty and illiteracy in their families.
64 2011 STANTEC SUSTAINABILITY REPORT OUR COMMUNITY INVESTMENT PROGRAM AT WORK IN 2011.
Daring to Care An Educational Safari A stockpile of goodwill and a real can-do attitude was In partnership with the nonprofit organization Brighten a just the right recipe for Stantec’s Louisville, Kentucky, Life, Stantec provided pro-bono architecture, interior, and office to demonstrate how much they dared to care. landscape design services as part of a collaboration to build During Stantec’s companywide canned food drive, the a new sustainable educational facility for a well-deserving office collected a total of 1,817 cans, more than doubling community. After an application and interview process, the amount of goods collected from any other participating Roadrunner Elementary School in Phoenix, Arizona, was office. This success was due to a bit of friendly competition, selected. Designed, built, and supplied entirely by volunteers, which spiced up the collection effort. The office divided the school aims to be the first of its kind targeting LEED® its 80-person staff into two teams, which competed to Platinum certification. see which floor could collect the most canned goods and use them to build the most creative sculpture. A panel The vision for the Safari Green Schoolhouse is to take students of impartial judges then graded each can-struction on on an educational safari. As students leave their windowless, its use of engineering design and creative ingenuity, factory-model school, they will transition into an educational ultimately crowning the 2nd floor team winners for their environment geared toward 21st Century instruction. The precise depiction of the Louisville skyline. However, the seven designated areas in the schoolhouse include: The Jungle real winner was Dare to Care, a nonprofit corporation (backyard and playground area), The Watering Hole (kitchen), that distributes food to those in need in the Kentucky The Zoo (interior play area), The Base Camp (lounge community and to which Stantec donated all of the area), The Guides’ Corner (administrative area), The Den collected food. (library), and First Aid Tent (health, wellness, and nutrition area). Collaborative learning is encouraged through flexible multipurpose indoor and outdoor learning spaces meant to support different student groupings and learning styles. A connection to nature is infused in the design through outdoor classroom gardens, natural stormwater management, on-site solar power generation, and a digital dashboard which enables students to monitor energy usage.
In 2011, this project was recognized with the Edward Kirkbride Award for Excellence in Educational Design and Planning from the Council of Educational Facilities Planners International.
Academy for Success In Nashville, Tennessee, the Stantec team has been The winning can-struction – a model of the city of Louisville made of more working together with a local high school to groom than 900 canned goods. future engineers. Employees have participated on an advisory board to assist with new curriculum development for the Engineering Academy at the John Overton High School. Our team has also created mentoring, job-shadowing, and internship programs so that students can gain insight into how an engineering firm operates and the life cycle of an engineering project.
STANTEC INC. 65 Helping Students Engineer Brighter Futures Stantec ‘Staches in Support of Movember Stantec continues to be a strong supporter of the Architectural, Things got a little hairy around Stantec’s offices in November Construction, and Engineering (ACE) Mentor Program of as staff helped to change the face of men’s health. “Movember” America. The ACE program encourages low-income high is a month-long global campaign to raise awareness and funds school students to pursue technical careers by joining together for prostate cancer treatment, disease prevention, and related students with volunteer mentors who are industry professionals. research. During the month of November, men and women The White House recently honored this program with the around the globe grow real or imagined moustaches in an effort Presidential Award for Excellence in Science, Mathematics to raise money for prostate cancer foundations. When the call and Engineering Mentoring. In 2011, Stantec donated $60,000 to grow a “Mo” went out across Stantec, our team delivered, and to this program. In addition, several Stantec employees 511 employees participated in mo-growing efforts. Altogether, volunteered as ACE mentors and one of our employees was the Stantec Movember teams raised a total of almost $127,000 involved on the board. to support the research, survivorship, awareness, and education carried out by prostate cancer foundations. Our Canada team Growing Compassion alone raised almost $123,000, which propelled Stantec to third Stantec has been a longtime supporter of Sorrentino’s place in the country and fifth place in the world for corporate Compassion House (SCH) in Edmonton, Alberta, having been participation. involved in the building’s original design. Since 2002, SCH has been a home away from home for more than 500 women from over 147 communities who have had to travel to Edmonton for medical treatment. It is a warm and supportive sanctuary for women undergoing breast cancer treatment, diagnosis, or follow-up care. The number of requests for accommodations at SCH has increased dramatically over the past few years, and it has regrettably had to turn hundreds of women away. A planned expansion will increase the number of guest suites from 6 to 14, improving access to the facility so that many more women and their families can enjoy its benefits. Stantec has committed to donate approximately $100,000 in fees to this project, which is scheduled to open its doors in 2012.
FOCUS ON OUR PEOPLE: John Kosar
Stantec principal John Kosar was presented with a Service to Humanity award in recognition of the work he has contributed to the March of Dimes over the last 50 years. John is an avid supporter of this nonprofit organization, whose mission is to improve the health of babies by preventing birth defects, premature birth, and infant mortality. In collaboration with other employees in our Pittsburgh, Pennsylvania, office, he organized a fundraising luncheon in 2011 that raised more than $65,000 for the March of Dimes.
66 2011 STANTEC SUSTAINABILITY REPORT IN FOCUS: BUILDING SUSTAINABLE COMMUNITIES
Stantec is helping to provide homes for people in need
We have a longstanding partnership with Habitat for The home has been designed so that the amount of Humanity (HFH), whose mission is to build affordable energy it consumes annually is equal to the amount housing and help low-income families attain home of energy it produces annually, resulting in net zero ownership as a means to breaking the cycle of poverty. energy. This will be achieved through measures such as HFH families contribute 500 hours of “sweat equity” as a a high-performance air-tight building envelope, energy down payment for their home and then pay an interest-free efficiency initiatives, on-site solar power generation, and mortgage that is amortized to 25 percent of their income. geothermal heating. Additional sustainable features will Many Stantec employees have volunteered on HFH home include a green roof and living wall, rainwater harvesting, builds, and several have sat on the board of directors for and use of environmentally preferable materials. their local HFH chapters.
In October, 2011, Stantec President and CEO Bob Gomes hosted the first “President’s Build” for HFH in Edmonton, Alberta. Bob brought together over 40 local presidents and CEOs and introduced them to HFH and its worthwhile initiatives. Participants put aside all competition and rivalry in support of this worthy cause.
Stantec also partnered with HFH to provide architectural design and sustainability consulting for an innovative NetZero duplex home prototype which is targeting Platinum LEED® for Homes certification. This exciting pilot project will demonstrate how precast concrete can be used to build sustainable energy-efficient homes.
Stantec Stingers Bike to Fight MS The Multiple Sclerosis (MS) Society of Canada estimates During the annual RONA MS Bike Tour, almost 2,000 that up to 75,000 Canadians suffer from MS, a disease people raise money for the fight against MS by cycling for which medical science has yet to find a cause and cure. 185 kilometres (115 miles) from Leduc to Camrose, MS affects the nervous system and causes debilitating Alberta. Stantec has a long history with the MS Bike Tour, symptoms such as loss of balance, impaired speech, having entered a team in the event for the past 5 years. extreme fatigue, double vision, and paralysis. For Kevin In 2011, eight volunteers and 35 bikers, including Kevin, O’Neil, Senior Environmental Scientist at Stantec, whose participated on the Stantec Stingers team. They succeeded sister Cyndie suffers from the disease, the battle is in raising over $36,000, which will support groundbreaking personal. His experiences with MS have led him to serve research dedicated to finding a cure for MS. as second vice chair for the MS Society’s Alberta & Northwest Territories Division as well as to participate in the RONA MS Bike Tour for the past 9 years.
STANTEC INC. 67 FOCUS ON OUR ENVIRONMENT
WE BRING VALUE TO OUR ENVIRONMENT BY ACTING AS RESPONSIBLE STEWARDS OF OUR COLLECTIVE AIR, WATER, AND LAND AND CONTINUOUSLY WORKING TO REDUCE THE FOOTPRINT OF OUR OPERATIONS.
We continue to take steps to lower the environmental impacts Our EMS requires a comprehensive annual assessment of the of our operations. To better support our Sustainability Policy annual carbon and environmental footprint of our operations and integrate sustainability into our operations and everyday across our more than 170 locations. This involves gathering practices within a disciplined and accountable framework, office-by-office information on key environmental aspects we have developed and implemented an Environmental related to energy, water, paper consumption, and waste Management System (EMS). generation, and then calculating the related greenhouse gas (GHG) emissions. Once the data has been evaluated, reduction ISO 14001:2004 is a globally recognized standard for developing targets are set for the most significant impacts and subsequently an EMS that helps organizations to minimize how their monitored at a corporate and individual office level. operations negatively affect the environment and to comply with applicable environmental laws and regulations. It requires Using 2010 environmental data as our baseline, an organization to identify potential environmental impacts our performance improvement goals for 2012 are to: and establish controls to minimize them, to monitor and t Reduce per capita energy consumption by 4 percent communicate environmental performance, and to establish a t Reduce per capita waste generation by 5 percent formal process for continually improving the system. t Reduce per capita paper usage by 10 percent; and t Ensure that at least 60 percent of paper purchased For 2011, our goal was to implement and successfully register has 100-percent post-consumer recycled content an organization-wide EMS to the ISO 14001:2004 standard. As part of this initiative, during 2011, we also planned to establish As part of our ANSI accreditation process, we developed a set of time-bound environmental improvement targets and to an in-house GHG Management System, which we apply develop a GHG emissions reduction strategy. internally to support improved GHG management, reduction, and disclosure. In September 2011, we successfully completed a certification audit for ISO 14001 by BSI Management Systems, an external third-party auditor, which involved audits conducted across the Company. We achieved our official ISO 14001 certification in January 2012. This certification has helped us to improve our internal processes and demonstrates our commitment to ongoing environmental awareness and performance improvement.
68 2011 STANTEC SUSTAINABILITY REPORT CARBON FOOTPRINT
As a basis for our environmental improvement objectives, measuring our carbon footprint aligns our overall efforts towards reducing our energy usage, operational costs, and carbon emissions. We have been voluntarily measuring our GHG emissions since 2008 because we recognize that measuring our emissions will allow us to manage and reduce them over time. We seek to make our climate impact transparent through third-party verification and CARBON FOOTPRINT public disclosure.
We report our GHG emissions annually through various In 2011, Stantec was one of the top 10 Canadian companies public disclosure programs. Stantec reports annually to recognized by the CDP as a Carbon Disclosure Leader, The Climate Registry (TCR), a North American-wide marking the second consecutive year we received this organization that sets consistent and transparent standards award. For more information about Stantec’s CDP for calculating, verifying, and publicly reporting GHGs. response, see page 35. We are a founding member of TCR, and in 2011 we were recognized as a full reporter and had Climate Registered™ Stantec’s carbon footprint is generated directly from its status with the organization, which means that our North vehicle activities and use of fuels such as natural gas American emissions information contains all six Kyoto- (Scope 1) and indirectly from the use of purchased defined GHGs and has been third-party verified. electricity and steam (Scope 2). As a services firm, Stantec’s primary emissions sources are the heating and We also report annually to the Carbon Disclosure Project cooling of office spaces, purchased electricity use, and (CDP), a data-collection and risk-disclosure registry. operation of fleet vehicles.
2011 HIGHLIGHTS t We were again named one of Canada’s Greenest Employers. t Our integrated management system was registered to the ISO 14001:2004 standard. t The number of our offices with a local Sustainability Team grew to 88. t Over 2,200 employees participated in our 2011 Cool Commute Challenge.
STANTEC INC. 69 We completed our first GHG emissions inventory for the Based on our data, average carbon emissions per employee 2008 calendar year and have since completed inventories on varied slightly over the past three years, with an increase of an annual basis. For the 2011 reporting year, we obtained office- approximately 3 percent from 2010 to 2011. Over the same level data for approximately 98 percent of our North American period, Stantec’s average emissions per square foot remained offices, which was an improvement from our 2010 baseline stable while its total emissions increased by approximately 9 inventory, when we obtained office-level data for 95 percent percent. This is an improvement from our 21 percent increase of our offices. Data for the remaining offices was estimated. For in annual emissions levels between 2009 and 2010. In 2011, more information about our calculation methodology, see page 85. Stantec’s total staff increased by approximately 6 percent, and the total square footage of its facilities decreased by 2 percent. In 2012, a third-party auditor will verify the complete Although we are still assessing all the factors that led to the emissions inventory for the 2011 reporting year in compliance increase in our total reported emissions, current indications with reporting parameters followed by Stantec. This data are that any increase not due to our growth is likely due verification may result in some adjustments to the numbers primarily to continual improvement in data quality and an below. If this is the case, these numbers will be restated in our increase in direct versus estimated data, which together have 2012 sustainability report. resulted in more accurate emissions information. In 2011, the amount of data estimated decreased due to an increase in After our 2010 data was verified, we made some minor accurate data received directly from our corporate fleet fuel adjustments to the data. Updated emissions data for 2010 management company. can be found in the table below and in the table on page 72. While we have made substantive improvements in our GHG Initial results of our 2011 GHG emissions inventory inventory data collection process over the past four years, include the following: obtaining high-quality, reliable emissions data is an ongoing t Total Scope 1 and Scope 2 emissions were 36,888 metric challenge. Since our offices are typically in multitenant
tonnes of carbon dioxide equivalent (CO2e) buildings and we do not own the majority of our facilities, our t The average CO2e emitted per employee was capacity to access and verify carbon and environmental data is 3.3 metric tonnes limited. Estimating emissions and using assumptions, averages, t Total energy used per square foot was 23.60 kWhr/ft² and simplified aggregation methodologies reduces overall data quality and accuracy. As we continue to improve our carbon The majority of Stantec’s 2011 GHG emissions, 73 percent, and environmental data management systems, we expect to see were Scope 2 emissions, which are primarily a result of the an increase in the quality and reliability of our emissions data. consumption of purchased electricity in our facilities. The remaining emissions were Scope 1, which are primarily due to natural gas consumption, fuel oil, and fuel from mobile sources including Company-owned and leased vehicles. 27% Scope 1* (mobile and stationary combustion) ESTIMATED GHG EMISSIONS 2011 09 GHG EMISSIONS BY SCOPE 10
11 73% 01525 10 03025 Scope 2*
t CO2e/ per employee (indirect GHG kWhr/ft2 emissions)
70 2011 STANTEC SUSTAINABILITY REPORT ENVIRONMENTAL FOOTPRINT
For the 2011 year, concurrently with our annual carbon footprint initiative, we completed our annual environmental footprint of our North American offices. Office-level data was collected on paper use, water use, ENVIRONMENTAL FOOTPRI NT and waste generation and used to calculate estimates for the entire Company. A summary of our results is included below. For details on our calculation methodology, see Waste Generation pages 84 to 85. In 2011, we made several improvements to our waste data collection and calculation methodology. We were able Energy Use to separate data by waste stream and we improved our In 2011, our total estimated direct energy consumption estimation process. Both of these changes enabled us to was 164,840 GJ. This primarily represented natural gas, track waste in a more effective and thorough manner. fuel, and fuel oil purchased by facilities and used in fleet vehicles. Our total estimated indirect energy consumption In 2011, our total estimated waste sent to landfill was was 182,152 GJ. This primarily represented electricity 29,461 tonnes, which amounts to approximately 2.67 purchased by facilities. tonnes of waste per employee. As of the end of 2011, approximately 81 percent of our North American offices Paper Use reported having a recycling program, which diverted In 2011, Stantec offices together used over 100 million an estimated 10,805 tonnes of recyclable materials from sheets of standard letter-size paper (the equivalent of landfill. For 2011, we were also able to track the number 8.5 by 11 inches), for a total cost of over $1.65 million. of offices that participated in a composting program. As While paper usage only increased by 15 percent, paper of the end of 2011, approximately 10 percent of our North costs increased by 32 percent from 2010 levels. Paper American offices reported having organics collection for use for 2011 was approximately 8,635 sheets of standard either a municipal or on-site composting program, which letter size per employee, an 8 percent increase from 2010 diverted an estimated 358 tonnes of organic compostable baseline levels. This includes all paper purchased for materials (food waste, coffee grinds, etc.) from landfill. internal printing purposes, including plotter paper where applicable, but does not include third-party printing, such Water Use as brochures or publications. In 2011, estimated total water use was 224,292 m3 (224,292,432 L), which amounts to 20.30 m3 (20,298 L) of In 2011, we began measuring the amount of recycled water per employee, a 17 percent increase from 2010. This content within the paper we use, which was only available represents all water consumption activities for our North for paper purchased from corporate office supply vendors. American facilities. The number of offices reporting The weighted average of recycled content in paper water data increased from 119 in 2010 to 147 in 2011. purchased by Stantec was 34 percent. We estimated water use for 54 offices (13 percent).
STANTEC INC. 71 This was our second year compiling Company-wide data on We also developed a questionnaire about green building paper use, water use, and waste generation, and we continued to practices that we ask landlords of any prospective new face challenges in doing so. However, in 2011, we made several leased space to complete as part of the evaluation process. improvements to our data collection and reporting process. Improvements to our environmental data management systems We developed a more interactive database, which enabled us to have significantly reduced the percentage of data we need to streamline the collection and reporting of environmental data estimate, resulting in increased data quality and reliability. and to increase the consistency of office-level environmental data. In order to improve our capacity to gather facility-level In 2012, we will continue to work with our offices and our environmental data, especially from multitenant buildings, we corporate vendors to collect more complete and comprehensive developed a clause regarding provision of utility usage data, environmental footprint data, with a focus on waste and water which our Real Estate team makes its best effort to negotiate data. To facilitate data compilation, we will also explore ways to into all new lease agreements. encourage more offices to use our corporate vendors.
CARBON AND ENVIRONMENTAL FOOTPRINT SUMMARY
2010 2011 Metric Total Per FTE Employee Total Per FTE Employee
GHG emissions 33,705 t CO2e 3.24 t CO2e 36,888 t CO2e 3.34 t CO2e (scope 1 and 2) Paper use 89,743,963 sheets 8,635 sheets 103,252,525 sheets 9,344 sheets (8.5”x11” equivalent) (8.5”x11” equivalent) (8.5”x11” equivalent) (8.5”x11” equivalent) Water use 180,489,249 L 16,333 L 224,292,432 L 20,298 L Waste collected 20,144 t 1.94 t 29,460 t 2.60 t
All data above is estimated in part. 2011 GHG emissions data has not yet been internally or externally verified. 2010 data has been restated due to review and revision of methodology. Waste data excludes recycling and organics collected. As the percentage of verified office-level data has increased, the reliability of the data has improved.
2011 WASTE INVENTORY
Weight Offices with Collection Programs Waste Collected 29,461 t 100% Recycling Collected 10,805 t 77% Organics Collected 358 t 10% Total Collected 40,624 t -
72 2011 STANTEC SUSTAINABILITY REPORT GREEN OFFICES
Our commitment to sustainability is also demonstrated Our Columbus, Ohio, office was a retrofit of a 1902 through the design of our own office buildings. Several building, making it one of the oldest existing structures to Stantec offices have been certified to the rigorous earn a national green certification. Nearly 70 percent of the environmental standards of the Leadership in Energy building’s existing architectural elements were preserved, and Environmental Design (LEED) green building rating and more than 60 percent of the new materials used in the system. In addition to reducing their environmental project were manufactured locally. footprint, designing office spaces to be more sustainable often results in more natural lighting, better air quality, Although not all of our offices target LEED certification, and higher space functionality, all of which lead to many of them strive to reduce their environmental healthier, happier employees. footprint in various ways. For example, our Saskatoon, Saskatchewan, office won a Municipal Heritage Design At the end of 2011, 15 Stantec offices were LEED certified Award for its efforts to reuse preexisting building materials or LEED registered. We added two new LEED-certified during its renovation. offices in 2011 and vacated one, bringing our total number of LEED-certified offices to eight, including one LEED Many of our offices have also received local recognition as Certified office, four LEED Silver offices, two LEED Gold a sustainable business. For example, our Sarasota, Florida, offices, and one LEED Platinum office. Seven additional office was the first engineering consulting firm to be Stantec offices are currently registered as targeting LEED certified by Sarasota County’s Green Business Partnership, certification. Our goal is to have a total of nine offices that and our Sacramento, California, office was certified as a meet a LEED-certified standard by the end of 2012. Sacramento Area Sustainable Business. In addition, our Rochester, New York, office is a member of the Upstate In 2011, we completed the LEED-CI Gold certification Green Business Network, and our Fredericton, New process for our downtown Toronto, Ontario, office. Brunswick, office is a member of the Green Shops program. This landmark project successfully reclaimed and transformed a piece of Toronto’s industrial history, an old Going forward, our Real Estate team will continue to sock factory, into a multi-award-winning, open-concept consider LEED and other green building features as part office space that has been featured in a television series. of the criteria for evaluation of new leased office space. We also became a tenant of a LEED-CS office complex in Long Beach, California, and we vacated our LEED-CI Gold office in San Francisco, California. Other LEED-certified NUMBER OF LEED-REGISTERED AND -CERTIFIED STANTEC OFFICES AS OF YEAR-END Stantec locations include the LEED-CI Silver atrium building at our Edmonton, Alberta, headquarters, which 09 has a green roof, one of the first of its kind in the city. 10 11 01012162 4 6 8 14 Certified Registered
STANTEC INC. 73 ENERGY CONSERVATION WASTE REDUCTION
Energy use is one of the primary areas in which we We have implemented several programs to safely can improve our environmental performance. We have manage and reduce waste. For example, the central global many opportunities to reduce our energy use through mailroom in our Edmonton, Alberta, headquarters uses conservation and improved energy efficiency. biodegradable packing chips when preparing parcels to mail to all our offices. We also safely recycle and dispose In 2008, we first implemented an energy-saving program of used IT equipment in accordance with regulatory that automatically put the majority of our computers guidelines, through Dell’s Asset Recovery Services. in hibernation mode every evening and weekend. To make improvements, the program was taken offline, We are also moving toward being a less paper-intensive but we set a goal to reinstate it in 2011. In June 2011, workplace. Some examples of initiatives that have reduced Stantec adopted a new power management tool called our paper use include increased use of electronic forms Green Planet™, installing this software on all Company and documents, use of a standard Company-wide email desktop computers and laptops. Green Planet™ reduces signature that asks people to consider the environment energy consumption by placing computers into before printing emails, and use of interactive electronic hibernation mode according to pre-programmed work holiday cards that enable recipients to select a charity to schedules, which account for regular working hours and which we will direct donations. As of 2009, we ceased bulk national holidays. Staff can customize their computer’s investor mailings and now only mail investor relations power management schedule to align with their individual materials upon request, which has significantly reduced the work requirements, local holidays, and vacations, printing of these materials. In 2009, we also implemented optimizing our power-saving capacity. We estimate this an electronic invoicing system. Since we typically receive program has reduced energy use by our computers by over 200,000 paper invoices annually, we expect that around 65 percent, making a substantial contribution to eliminating the printing and copying of these documents reducing our environmental footprint and our bottom line. has resulted in a considerable reduction in paper use.
In 2012, our goal is to reduce per capita energy Below are some examples of waste reduction initiatives consumption by 4 percent from 2010 baseline data. in 2011: To accomplish this, we will undertake the following t In partnership with Firefly IT Asset Recovery, initiatives: we rolled out a program to responsibly recycle our t Conduct energy audits of 3 to 5 offices with low damaged and non-functioning wireless equipment energy consumption to identify key contributing (i.e., cell phones and related accessories). Firefly’s factors and best practices. zero-landfill policy means that e-waste they process t Conduct energy audits of 5 to 10 offices with high will not be sent to landfill or end up in developing energy consumption to identify factors contributing countries. to energy consumption, then develop implementation t We now offer electronic paystubs in both Canada strategies for each of these office locations to reduce and the US, where 97 percent of our employees are consumption. located. If all of our North American employees were t Confirm that our computer hibernation program is to switch to electronic paystubs, estimated paper standard practice in all offices. savings would be over 70,000 sheets a year. At the end t Develop an educational campaign to encourage of 2011, 31 percent of our Canadian employees and energy-efficient behavior. 91 percent of our US employees were receiving their paystubs electronically.
74 2011 STANTEC SUSTAINABILITY REPORT t We switched from paper to electronic approval and filing In 2012, our goal is to reduce per capita waste generation of our wireless contracts, resulting in a 50 percent by 5 percent from 2010 baseline data. To accomplish this, reduction in paper use for this process and an estimated we will undertake the following initiatives: paper savings of 2,000 sheets a year. t Implement an office recycling program in all offices where t Over 5,000 of our corporate credit card users switched off-site recycling services are available. from paper to electronic invoices, which will save an t Develop and implement a waste reduction program related estimated 150,000 sheets of paper per year. At the end to beverage and food service to reduce disposables and of 2011, 98 percent of our corporate credit card users packaging. had elected to receive electronic invoices. t Our Irvine, California, office began a pilot program to A second waste reduction goal for 2012 is to reduce collect used writing instruments (such as pens, pencils, per capita paper usage by 10 percent from 2010 baseline data. markers, and caps) that will be recycled in partnership To accomplish this, we will undertake the following initiatives: with TerraCycle. t Set the default setting on all printers to t Through implementation of our new Records Management double-sided printing. Policy, we are standardizing and centralizing our record- t Develop and communicate an education campaign keeping processes and saving paper, money, and valuable on reducing paper consumption. office space by keeping only those records we are required t Eliminate printing of e-mail and project records. to keep.
FOCUS ON OUR PEOPLE: Louie Greenwell
For Louie Greenwell, a principal in our Louisville, Kentucky, office, it’s not just his name that is green. By capitalizing on his colleagues’ coffee addiction, he’s showing them how to live green by reducing waste and eating local. Shortly after moving into the office, he began collecting used coffee grounds for use in his garden. Every other week, he collects approximately 30 pounds (14 kilograms) of used coffee and tea grounds between the two coffee stations in the building. He takes them home and uses them to fuel his compost bin, and then uses the finished compost to feed his 850 ft² (79 m²) vegetable garden. His garden grows enough vegetables to feed his family and neighbors, and overflow produce ultimately makes it back into the office break room. In 2011, he was able to supply his work colleagues at least six different types of vegetables and fruits, grown in part thanks to the free fertilizer saved from the break room trash bin.
STANTEC INC. 75 PROCUREMENT STAFF COMMUTING
We consider environmental factors in some of our We encourage employees to avoid single-occupant vehicle purchasing decisions. Although we are taking significant use in favor of more sustainable modes of commuting. steps to reduce our paper use, offices still necessarily A few examples of some of our green commuting consume a lot of paper. Therefore, we make every effort incentives can be found in the table below. to use ecologically friendly paper materials. Most of our publications, branded paper products, and marketing Enhancing communication and collaboration among our materials use paper with at least 80-percent postconsumer geographically dispersed staff is an ongoing challenge. recycled content. In addition, the majority of our With Stantec’s expertise spread across the globe and with publications are printed using vegetable- or soy-based inks. clients requiring quick access to that expertise, technology can help break down these barriers. We aim to provide We also have a “green line” of ecofriendly promotional staff with secure access to network resources on a range items, such as corporate gifts and tradeshow giveaways, of devices so that no matter where they are, they can which includes products that are reusable, organic, collaborate effectively in a virtual, real-time environment biodegradable, energy efficient, or made from recycled both together and with clients. materials or natural ingredients. Travel is an inevitable aspect of our business, but we In 2012, our goal is to increase the percentage of continue to explore ways to reduce the number and length 100-percent postconsumer recycled paper to 60 percent of business trips taken by our staff. By 2012, we plan of paper purchased. To achieve this, we will develop to reduce the need for business travel and commuting procurement guidelines for all paper purchases and by increasing employee access to collaborative remote vendor-supplied paper products. In 2011, for paper communications tools. In April 2011, we installed Lync, a purchased through our preferred office supply partner, we powerful online collaboration tool with instant messaging, achieved 67 percent usage of recycled paper in Canada and audio, and video chat capabilities, on all Company 18 percent usage of recycled paper in the US. Both of these computers. Since deployment of Lync, web conferencing figures refer to paper with any amount of recycled content. has been climbing steadily, with our employees now averaging around 550 instant messaging conferences and over 100 audio and video conferences each week.
SAMPLE SUSTAINABLE COMMUTING PROGRAMS AT STANTEC Taking Transit Through partnerships with local employer pass programs, we subsidize the cost of transit passes by at least 25 percent for employees at four of our largest offices. In our Toronto, Ontario, office, more than 40 percent of our employees have joined this program. Cycling and Walking Many of our offices provide amenities for cyclists and walkers, including secure bicycle parking, showers, change rooms, and lockers. At our Company headquarters, we have set up a bicycle repair center and an in-house eco-friendly dry cleaning program, both of which help support employee cyclists. Carpooling Carpooling partnership programs are in place at a few of our offices. These programs help staff find a carpool partner and sometimes provide additional perks, such as reserved prime parking spaces for carpoolers. Carsharing A few of our offices provide at least one shared vehicle for employees to use for site visits, client meetings, and personal appointments. For example, our Toronto, Ontario, office has partnered with local car-share provider ZipCar to make shared vehicles readily available for employees. Teleworking By increasing employee access to collaborative remote communication tools and by installing videoconferencing facilities at many of our offices, we have simultaneously increased the potential for employees to telework and reduced the need for business trips.
76 2011 STANTEC SUSTAINABILITY REPORT Every other meeting of our Executive Leadership Team is By supporting virtual teamwork, increased use of remote now being held on Lync, demonstrating leadership support communication tools is expected to reduce employee travel for reducing travel. In 2011, we also rolled out Microsoft and associated energy use while increasing our ability to Office 2010. respond quickly to clients’ needs.
In 2012, we plan to upgrade to the latest version of SharePoint. All of these software components are designed to seamlessly work together to enable virtual, real-time communication, collaboration, and document sharing.
EDUCATION AND ENGAGEMENT
A key element of our sustainability strategy is embedding The engagement program is delivered through two sustainability into our organizational culture. Our main avenues: Company-wide Sustainability Engagement (SE) program t Online – On our Company intranet, StanNet, builds basic sustainability understanding, skills, and we have an online community focused on relevance through employee participation and collective sustainability. This includes a sustainability news page learning and action, in addition to support of office-driven as well as other information pages dedicated to current projects. We aim to integrate this program with existing and ongoing sustainability activities. sustainability initiatives to ensure that it is consistent with t Sustainability Teams – Many of our offices have corporate, regional, and local efforts and targets. established Sustainability or Green Teams, which are voluntary groups of employees that work together on Our central SE Specialist works together with our local initiatives to enhance the positive environmental Sustainability Teams to deliver this program through and social impacts of their workplace. They are key to development and implementation of an annual SE plan. the success of the SE program as they are the drivers Maintaining an SE program that is relevant across a large of Company-wide sustainability challenges as well as and geographically diverse company can be challenging. local events and activities. The annual SE plan is a flexible framework, intended to stimulate ideas, discussion, and participation while The number of offices with a local Sustainability Team enabling each individual office to adapt content and nearly tripled over the past three years, growing from activities to their local environment. The main elements 30 at the end of 2009 to 88 at the end of 2011. We now of the SE program include relevant themes, suggested office have Sustainability Teams in place at more than half of our activities each month, friendly Company-wide inter-office 170 locations. In 2012, our target is to have Sustainability challenges, and additional resources. Teams at 100 of our offices.
NUMBER OF OFFICES WITH A SUSTAINABILITY TEAM AS OF YEAR-END
09 30 10 60 11 88 010 20 30 40 50 6070 80 90 100
STANTEC INC. 77 In order to make sustainability activities more accessible The event featured an internal interactive web page and a new to all of our offices, in 2011, the SE program incorporated a new online commute-tracking database, which streamlined data sustainability lunch-and-learn series, which included three live collection and significantly reduced the workload for compiling online webinars held throughout the year, each followed by a statistics. It also made data reporting more interactive for our question-and-answer period. Delivered by in-house experts, employees, enabling participants to see live individual and these webinars focused on creating elevated awareness of team results, and further increasing interest in the event. To Company-wide sustainability initiatives and aimed to provide a complement the Cool Commute photo contest, we launched stronger connection between sustainability initiatives and goals a new blogging contest to encourage staff to share their at a local (individual office) and corporate (Company-wide) sustainable commuting stories. level. The webinars were recorded and were available online for all employees to view on-demand. The CCC event has been incredibly successful at getting employees to try sustainable commuting. In a 2011 postevent Company-wide events in 2011 included our No Impact Week survey completed by almost 500 employees, the percentage Challenge, which took place in April, and our annual Cool of respondents who “strongly agreed” that sustainable Commute Challenge, which took place in June. transportation is a viable mode of commuting for them increased by 6 percent, from 56 percent prior to participating Earth Week Challenge in the event to 62 percent afterwards. A total of 71 percent of In honor of Earth Week, many offices participated in a five-day respondents stated they would be “very likely” to continue No Impact Week Challenge. This event promoted the benefits using sustainable transportation after the event was over. of doing more with less and the values of thriftiness, utility, Nearly half of all respondents (49 percent) indicated that and resourcefulness. Employees were encouraged to share their their primary mode of commuting was via a single-occupant experiences and ideas on the No Impact blog, qualifying them vehicle, and a modal shift in this group can have a demonstrable to win an ecofriendly prize. Staff were invited to blog about environmental benefit. Many employees have continued to ideas that benefitted the planet, were innovative or resourceful, commute sustainably following the competition, and some and were easy for others to use in their daily lives. Employees employees have attributed significant health benefits, such as then voted on the winner from a preselected pool of finalists. weight loss from cycling, to their participation in this event.
Cool Commute Challenge In 2010, Stantec built on the previous success of its Bike- NUMBER OF EMPLOYEES PARTICIPATING to-Work Office Challenge by launching its signature Cool IN SUSTAINABLE COMMUTING EVENTS Commute Challenge (CCC) event. This is a month-long friendly interoffice competition that encourages employees to 09 use more sustainable modes of transportation, such as cycling, 10 walking, taking transit, carpooling, or teleworking. 11 0500 1,000 1,500 2,000 2,500 In total, 2,228 employees from 105 offices participated in the 2011 CCC, which represented over 20 percent of our total staff. Cool Commute Challenge Commuter Challenge Bike to Work Challenge While we did not meet our goal of 2,500 participants, we still saw an increase in staff participation of more than 10 percent. Our employees logged a total of almost 1 million kilometers (621,000 miles) in sustainable commutes. Participants included the CEO, CFO, and several additional members of our Executive Leadership Team.
78 2011 STANTEC SUSTAINABILITY REPORT IN FOCUS: OFFICE ECOLOGY
Stantec’s ECOS team is working to reduce the environmental footprint of the global headquarters
Stantec’s global headquarters in Edmonton, Alberta, has a long history of environmental initiatives. To further build on this, in February 2010, it formally established the Edmonton Committee for Office Sustainability (ECOS), a voluntary group of employees that meet regularly in order to recommend, initiate, and implement efforts to make Stantec Centre’s internal operations more environmentally responsible.
One of the first projects spearheaded by ECOS was installation of a rooftop solar photovoltaic (PV) system. The team put together a successful application for the City of Edmonton’s pilot commercial solar rebate program, receiving the maximum grant amount, which covered almost a third of the project’s estimated costs.
They then prepared a detailed business case proposal, Edmonton regional leader Keith Shillington together with members of the ECOS which was supported by the regional office leader. Risk team gathered behind the rooftop solar PV system analysis, energy opportunity assessment, system design, construction management, testing, and commissioning In 2011, the ECOS team conducted a comprehensive online for the project were all handled by Stantec professionals. survey to determine employee commuting habits and which Installation of the 30-panel 6.60 kW PV system was incentives were most likely to reduce vehicle trips. They completed in April 2011. The solar panels are estimated to subsequently organized several sustainable commuting contribute to 10 percent of the South Tower’s total annual initiatives, including developing a series of educational posters, electricity consumption, reducing GHG emissions by 6.5 running workshops, and organizing a month-long calendar of tonnes of CO2e a year. local activities during the corporate Cool Commute Challenge. To reduce local pollution, they also permanently displayed anti- The ECOS team also spearheaded many waste reduction idling signs at the building’s main vehicle entryways. initiatives in 2011. To increase staff awareness about the amount and type of waste produced at the office, they conducted a thorough baseline waste audit, with the help of more than a dozen employee volunteers. One of the audits was done in the lobby in the middle of the workday, so that employees could see all of the garbage collected and sorted. A pilot project was implemented to collect coffee grounds from the in-house coffee shop, which were used to fertilize the green roof. The team also hosted a series of lunchtime employee focus groups to uncover opportunities to reduce paper use.
STANTEC INC. 79 200720072007 200720072007 2007200B72007 200720072007 200GRI7 200REPORT72007 SELF2007 DECLARED20072007 GRI CONTENT INDEX 200720072007
This report has been prepared in accordance with the GRI’s G3.1 sustainability reporting guidelines, and we are confident that it meets the requirements of Application Level B. The index below shows the indicators that have been reported on and where each disclosure can be found. Some disclosures are not included in this report but can be found in other publically available documents as referenced below. For more information about the GRI, visit www.globalreporting.org.
The table below provides an overview of GRI’s application levels and the requirements for attaining each of them.
GRI Indicator Indicator Description 2011 Disclosure
PROFILE 1: STRATEGY AND ANALYSIS 1.1 Statement from the most senior decision- SR, pages 10 to 11; Full description of our corporate strategy: FR, pages M-4 to maker of the organization (e.g., CEO, M-13; BR, pages 14 to 27 chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy 1.2 Description of key impacts, risks, and SR, pages 10 to 11, 18 to 20, and 35 opportunities 2: ORGANIZATIONAL PROFILE 2.1 Name of the organization FR, page F-9 2.2 Primary brands, products, and/or services SR, pages 3 to 7; FR, pages M-4 to M-13; AIF, pages 9 to 11; BR, pages 16 to 21 2.3 Operational structure of the organization, FR, pages F-9, F-35 to F-36, and F-58 to F-59; AIF, pages 3 to 5 including main divisions, operating companies, subsidiaries, and joint ventures
80 2011 STANTEC SUSTAINABILITY REPORT GRI Indicator Indicator Description 2011 Disclosure
2.4 Location of organization’s headquarters FR, page F-9; AIF, page 3 2.5 Number of countries where the organization FR, pages F-36, F-58 to F-59, and F-61; AIF, pages 4, 5, and 12 operates and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report 2.6 Nature of ownership and legal form AIF, page 3 2.7 Markets served (including geographic FR, pages M-5 to M-8 breakdown,sectors served, and types of customers/beneficiaries) 2.8 Scale of the reporting organization Employee numbers: FR, page M-11; Net revenue: FR, page F-5; Total capitalization: FR, page 8 (share prices and shares outstanding); Quantity of services provided: not applicable; Total assets: FR, page F-4; Breakdown by country of revenue: FR, page F-61 2.9 Significant changes during the reporting FR, pages F-9 to F-70; AIF, pages 5 to 8 period regarding size, structure, or ownership 2.10 Awards received in the reporting period SR, pages 12 to 17 3. REPORT PARAMETERS Report Profile 3.1 Reporting period (e.g., fiscal/calendar year) SR, page 9 for information provided 3.2 Date of most recent previous report (if any) SR, page 9 3.3 Reporting cycle (annual, biennial, etc.) SR, page 9 3.4 Contact point for questions regarding the SR, page IBC report or its contents Report Scope and Boundary 3.5 Process for defining report content SR, pages 9 and 22 to 27; FR, pages F-9 to F-10 (Basis of Consolidation). In determining what information to report, we focused on the sustainability impacts that we considered to be the most significant for our organization and for which we currently have the capacity to accurately measure data 3.6 Boundary of the report (e.g., countries, SR, page 9; FR, page F-9 (Basis of Consolidation) divisions, subsidiaries, leased facilities, joint ventures, suppliers)
3.7** State any specific limitations on the scope or SR, page 9; FR, page F-9 (Basis of Consolidation) boundary of the report 3.8 Basis for reporting on joint ventures, SR, page 9; FR, pages F-9 to F-10 (Basis of Consolidation) and pages F-10 to F-18 subsidiaries, leased facilities, outsourced (Summary of Significant Accounting Policies) operations, and other entities that can significantly affect comparability from period to period and/or between organizations
3.9** Data measurement techniques and the bases SR, pages 9 and 80 to 91; FR, pages F-10 to F-18 (Summary of Significant of calculations, including assumptions and Accounting Policies) and F-19 to F-21 (Significant Accounting Judgements, Estimates, techniques underlying estimations applied to and Assumptions) the compilation of the indicators and other information in the report 3.10 Explanation of the effect of any restatements SR, pages 70 and 86 (LA2); FR, pages F-10 to F-18 (Summary of Significant of information provided in earlier reports Accounting Policies) and F-62 to F-70 (Transition to IFRS) and the reasons for such restatement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods) 3.11 Significant changes from previous reporting SR, pages 70 and 86 (LA2); FR, pages F-10 to F-18 (Summary of Significant periods in the scope, boundary, or Accounting Policies) and F-62 to F-70 (Transition to IFRS) measurement methods applied in the report
STANTEC INC. 81 GRI Indicator Indicator Description 2011 Disclosure GRI Content Index 3.12 Table identifying the location of the Standard SR, pages 80 to 89 Disclosures in the report Assurance 3.13 Policy and current practice with regard to SR, pages 9 and 27 seeking external assurance for the report 4: GOVERNANCE, COMMITMENTS, AND ENGAGEMENT Governance 4.1 Governance structure of the organization, SR, pages 28 to 29; FR, pages M-73 to M-74 (Corporate Governance); AIF, pages including committees under the highest 14 to 17; MIC, pages 9 to 17 and 38 to 43. Our corporate governance model governance body responsible for complies with the corporate governance guidelines set out in National Policy 58- specific tasks, such as setting strategy or 201, addressing practices in three main areas: stewardship, independence, and organizational oversight expertise 4.2 Indicate whether the chair of the highest AIF, pages 14 to 16 governance body is also an executive officer (and, if so, their function within the organization’s management and the reasons for this arrangement) 4.3 For organizations that have a unitary board AIF, pages 14 to 16 structure, state the number and gender of members of the highest governance body that are independent and/or nonexecutive members 4.4 Mechanisms for shareholders and Shareholders are free to submit a shareholder proposal to the Company that can be employees to provide recommendations or raised at the next annual general meeting of the Company for all shareholders to direction to the highest governance body consider. Our Integrity policy provides a means for all stakeholders to voice concerns directly to our board of directors and senior management. Both our external and internal Company websites publicize this policy and provide contact information, reassurance of anonymity, and an outline of the process for addressing concerns
4.5** Linkage between compensation for MIC, pages 20 to 36 members of the highest governance body, senior managers, and executives (including departure arrangements) and the organization’s performance (including social and environmental performance)
4.6** Processes in place for the highest Our Code of Ethics, Integrity, and Majority Voting policies are disclosed in the governance body to ensure conflicts of Investors/Governance section of stantec.com. All other policies are published interest are avoided internally on our Company intranet. The board of directors believes that its effectiveness is furthered when directors exercise independent judgment in considering transactions and agreements. As such, if at any board of directors’ meeting a director or executive officer has a material interest in a matter being considered, such director or officer will not be present for discussions relating to the matter and will not participate in any vote on the matter 4.7 Process for determining the composition, We assess the skills and expertise of the board of directors of Stantec Inc. through qualifications, and expertise of the members the circulation of annual surveys, which are completed by each of the directors. For of the highest governance body and its a chart detailing the collective skill and expertise of our board, see MIC, page 14 committees, including any consideration of gender and other indicators of diversity
82 2011 STANTEC SUSTAINABILITY REPORT GRI Indicator Indicator Description 2011 Disclosure
4.8 Internally developed statements of mission SR, pages 28 to 29. A statement of our vision and values is disclosed on our or values, codes of conduct, and principles corporate website. The board of directors has adopted a comprehensive code of relevant to economic, environmental, and business conduct and ethics, which provides a framework for directors, officers, social performance and the status of their and employees for the conduct and ethical decision-making that is integral to their implementation work. The Company requires that all officers and employees annually certify that they have read and understand the code. The code is reviewed at least annually by the Corporate Governance and Compensation Committee to ensure that it complies with all legal requirements and is in alignment with best practices. In the event that amendments are needed, recommendations are made to the Corporate Governance and Compensation Committee and the board of directors for approval. The code is available in the Investors/Governance section of stantec.com 4.9 Procedures of the highest governance The Audit and Risk Committee meets quarterly and reports to the Board of Directors. body for overseeing the organization’s For a detailed review of the mandate and workplan, see MIC, pages 14 to 16 identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles 4.10 Processes for evaluating the highest The board of directors conducts a self-assessment each year. The shareholders governance body’s own performance, vote to elect the directors at each annual general meeting. If the shareholders are particularly with respect to economic, unhappy with performance, they can choose to withhold their votes for any or all of environmental, and social performance the directors Commitments to External Initiatives
4.11** Explanation of whether and how the At least annually, we perform a formal assessment of the key risks facing our precautionary approach or principle is Company. The assessment is performed using the Committee of Sponsoring addressed by the organization Organizations (COSO) Risk Assessment model. Risks are identified and assessed first for inherent risk (before risk mitigation) and second for residual risk (after risk mitigation). The objective of this risk assessment process is to understand risks and ensure that they are managed in accordance with the Company’s risk appetite. Decisions regarding risk mitigation are made based on a number of considerations, including the relationship between risk and reward. Even if we had unlimited resources, we would not be able to eliminate all risk. Accordingly, we take calculated steps to manage our risk mitigation strategies for all identified risks with an emphasis on the top risks 4.12 Externally developed economic, SR, pages 13, 30, 38 to 39, 47, 56 to 57, 82 (4.1), and 83 (4.11) environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses
4.13** Memberships in associations (such as SR, pages 13, 62, and 73 industry associations) and/or national/ international advocacy organizations Stakeholder Engagement 4.14 List of stakeholder groups engaged by the SR, pages 22 to 27 and 92 to 93 organization 4.15 Basis for identification and selection of SR, pages 22 to 27 and 92 to 93 stakeholders with whom to engage
4.16** Approaches to stakeholder engagement, SR, pages 22 to 27 and 92 to 93 including frequency of engagement by type and by stakeholder group 4.17 Key topics and concerns that have been SR, pages 22 to 27 and 92 to 93 raised through stakeholder engagement and how the organization has responded to those key topics and concerns, including through its reporting
STANTEC INC. 83 GRI Indicator Indicator Description 2011 Disclosure
MANAGEMENT APPROACH AND PERFORMANCE INDICATORS ECONOMIC
DMA** Disclosure on management approach Goals and performance: FR, pages M-17 and M-45 to M-48; Policy: FR, M-4 to M-13; Additional contextual information: SR, pages 32 to 35; FR, pages M-4 to M-45 and M-61 to M-73 Economic Performance
EC1** Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments Direct economic value generated a) Revenues: Net sales plus revenues from FR, pages F-5 to F-8 financial investments and sales of assets Economic value distributed b) Operating costs: Payments to suppliers, FR, page F-8 (Cash paid to suppliers) nonstrategic investments, royalties, and facilitation payments c) Employee wages and benefits: Total FR, page F-8 (Cash paid to employees – includes pensions) monetary outflows for employees (current payments, not future commitments) d) Payments to providers of capital: All FR, page F-8 (Interest paid) financial payments made to the providers of the organization’s capital e) Payments to government: Gross taxes FR, page F-8 (Income taxes paid – not broken down by country) f) Community investments: Voluntary SR, pages 63 to 67 contributions and investment of funds in the broader community (includes donations) EC2 Financial implications and other risks and SR, page 35; CDP, sections 2, 5, and 6; FR, page M-47 opportunities for the organization’s activities due to climate change EC3 Coverage of the organization’s defined SR, pages 51 to 52; FR, pages F-16 (Employee benefit plans) and F-56 (Employee benefit plan obligations Costs: Pension costs). We do not have a defined benefit plan but a defined contribution plan EC4 Significant financial assistance received from FR, page F-62, note 37. We receive tax credits for research and development government initiatives Market Presence
EC6** Policy, practices, and proportion of SR, pages 56 to 57 spending on locally-based suppliers at significant locations of operation ENVIRONMENTAL
DMA** Disclosure on management approach Goals and performance: SR, pages 18, 20, and 68 to 79; Policy: Sustainability policy (SR, page 29) and HSE policy; Organizational responsibility: SR, pages 28 to 30, and 37 to 38; Training and awareness: SR, pages 28 to 31, 53 to 55, and 68 to 79; Monitoring and follow-up: SR, pages 28 to 31 and 68 to 79; Additional contextual information: SR, pages 68 to 79 Materials
EN1** Materials used by weight or volume SR, pages 71 to 72 Paper: The estimated total weight of paper purchased in 2011 was approximately 537 metric tonnes. This included all paper purchased for internal printing purposes, including plotter paper where applicable, but did not include third-party printing Methodology: Paper purchase data for US and Canadian offices was collected from corporate office supply vendors. Offices that used other vendors provided independent data. For facilities that did not provide paper purchase data, paper use was estimated based on per capita paper use from data collected. All paper data was converted into standard letter size (8.5 x 11 inches), based on known surface area dimensions. Paper weight was calculated based on the assumption that an average ream of paper is approximately 2.6 kilograms
84 2011 STANTEC SUSTAINABILITY REPORT GRI Indicator Indicator Description 2011 Disclosure
EN2** Percentage of materials used that are SR, pages 71 to 79. The weighted average of recycled content in paper purchased recycled input materials from corporate office supply vendors was 34%. Data excludes offices that did not use our corporate office supply vendors Energy EN3 Direct energy consumption by primary SR, pages 71 to 72; CDP, sections 9.1a to 9.1d; Estimated total direct energy energy source consumption was 164,840 GJ. This primarily represented natural gas, fuel, and fuel oil purchased by facilities and used in fleet vehicles EN4 Indirect energy consumption by primary SR, pages 71 to 72; CDP, section 12.2. Estimated total indirect energy consumption source was 182,152 GJ. This primarily represented electricity purchased by facilities EN7 Initiatives to reduce indirect energy SR, pages 68 and 73 to 79 consumption and reductions achieved Water
EN8** Total water withdrawal by source SR, pages 71 to 72. Total estimated water use in 2011 was 224,292 m³ (224,292,432 L). Estimated water use per employee was 20.29 m³ (20,297 L)/year. This represented all water consumption activities for our facilities. Methodology: Water use data was collected at the office level for 147 offices. For facilities that were submetered, data represented annual water consumption. For facilities that were not submetered, annual water consumption was estimated based on the number of employees per office. Average water use per employee was based on reported information from submetered offices. For facilities that were unable to provide data, water use was estimated based on per capita water use from data collected Emissions, Effluents, and Waste
EN16 Total direct and indirect GHG emissions by SR, pages 69 to 70 and 72; CDP, sections 7.1 to 13.4. Estimated total CO2e weight was 36,888 tonnes (Scope 1 was 9,967 tonnes, Scope 2 was 26,921 tonnes). Methodology: Data was collected at the office level for a subset of 190 offices, representing 95% of our employees. For facilities that did not provide data, data was estimated based on kWh/ft2 intensity levels from similar sized facilities in the same geographical regions EN18 Initiatives to reduce greenhouse gas SR, pages 68 and 73 to 79 emissions and reductions achieved
EN19** Emissions of ozone-depleting substances by Since we are a professional services firm, we do not have any significant emissions weight of ozone-depleting substances. Any emissions from refrigerants or other sources are considered negligible or beyond our operational control
EN22** Total weight of waste by type and disposal SR, pages 71 to 72. method Methodology: Waste data was collected at the office level. Annual production of waste for facilities that were not billed directly for waste or offices that had not completed a waste audit was estimated based on the size of waste collection bins, frequency of pick-up, and estimated “fullness” of bins. This process was repeated for recycling and composting. For offices that were unable to provide waste data, estimations were made using an indicator of kg of waste per square foot. The size range of offices (small, medium, large) were used to further streamline data and to avoid anomalies within the data EN23 Total number and volume of significant spills 0 significant spills Products and Services
EN26** Initiatives to mitigate environmental impacts SR, pages 36 to 41 of products and services and extent of impact mitigation
EN27*** Percentage of products sold and packaging Not applicable to Stantec materials reclaimed by category
STANTEC INC. 85 GRI Indicator Indicator Description 2011 Disclosure Compliance EN28 Monetary value of significant fines and There have been no significant fines or penalties against Stantec relating to total number of nonmonetary sanctions for environmental laws and regulations. During this period, one matter was settled with noncompliance with environmental laws and the Federal Aviation Administration and we received one Notice of Non-Compliance regulations and one Warning Letter from the Tennessee DEC and Alberta Environment, respectively. In each instance, Stantec has cooperated with the applicable regulatory board/department in responding to the incident; in fact, Stantec self-identified one of the incidents and initiated contact with the applicable regulatory board to seek guidance. Further, Stantec’s Risk Management team has taken proactive steps to review and update its practices and procedures to prevent future incidents SOCIAL LABOR PRACTICES & DECENT WORK
DMA** Disclosure on management approach Goals and performance: SR, pages 18 to 19 and 42 to 55; Policy: 5 Employment Services policies, Harassment and Discrimination policy, 2 Health and Safety policies; Organizational responsibility: SR, pages 42 to 55; Training and awareness: SR, pages 28 to 31 and 42 to 55; Monitoring and follow-up: SR, pages 28 to 31 and 42 to 55; Additional contextual information: SR, pages 42 to 55 Employment LA1 Total workforce by employment type, SR, page 43. All data other than region, type of employment contract, and gender employment contract, and region, broken excludes contractors down by gender
LA2** Total number and rate of new employee SR, pages 44 to 45 hires and employee turnover by age group, Methodology: In our previous sustainability reports, we published turnover numbers gender, and region for employees who had been employed by Stantec for three years or longer. However, in this year’s report, to give a more comprehensive overview of our staff turnover, we decided to include turnover information for all employees. We have, therefore, restated our turnover numbers for both 2009 and 2010. For more information about how we calculate employee turnover numbers, see the Glossary on page 90. LA3 Benefits provided to full-time employees that SR, pages 51 to 52 are not provided to temporary or part- time employees, by significant locations of operation Labor/Management Relations LA4 Percentage of employees covered by 0 percent (no collective bargaining agreements) collective bargaining agreements Occupational Health and Safety
LA7** Rates of injury, occupational diseases, lost Incident rates: SR, pages 49 to 50; Occupational disease rate: zero; Fatalities: zero. days, and absenteeism and total number Our record-keeping system is consistent with OSHA guidelines of work-related fatalities, by region and by gender
LA9*** Health and safety topics covered in formal Not applicable to Stantec agreements with trade unions Training and Education LA10 Average hours of training per year per SR, pages 53 to 55. Our employee training data has several limitations. Average employee by gender, and by employee overall training hours per employee is calculated using data from employees’ category own coding of their working hours in their weekly timecard. This data could be understated for various reasons, including: training hours being coded incorrectly (for example, as “administration” instead of “training”), training occurring outside of regular work hours, employees choosing to pursue optional training for which Stantec contributed towards the costs but not the time, or employees choosing not to claim training hours due to its negative impact on employee’s utilization rates (the percentage of time employees spend on billable client work versus administrative tasks). Data on training hours for specific internal training programs, such as Leadership and Project Management Training, is expected to be relatively accurate as it is based on attendance levels recorded by program organizers. However, unreported attendances may still lead to some minimal inaccuracies
86 2011 STANTEC SUSTAINABILITY REPORT GRI Indicator Indicator Description 2011 Disclosure
LA12 Percentage of employees receiving regular SR, page 54 performance and career development reviews, by gender Diversity and Equal Opportunity LA13 Composition of governance bodies and SR, pages 46 to 48. In the United States, we are required by law to record minority breakdown of employees per employee group information for all employees, whereas in Canada, we gather voluntary category according to gender, age group, information regarding employee membership in minority groups, which allows us minority group membership, and other to estimate employee diversity statistics. Prior to 2010, we did not track employees indicators of diversity with disabilities in the United States. In 2010, we implemented a system to track this information; however, it applies only to new US employees HUMAN RIGHTS
DMA** Disclosure on management approach Goals and performance: SR, pages 18 to 19, 46 to 48, and 56 to 61; Policy: 5 Employment Services policies, 12 Business Conduct policies, and Harassment and Discrimination policy; Organizational risk assessment: SR, pages 46 to 48 and 56 to 61; Impact assessment: SR, pages 46 to 48 and 56 to 61; Organizational responsibility: VP, Risk Management/General Counsel, VP, Human Resources, and VP, US Federal Contracting; Training and awareness: SR, pages 28 to 31, and 53 to 55; Monitoring, follow-up, and remediation: SR, pages 28 to 31, 46 to 48, and 56 to 61; Additional contextual information: SR, pages 46 to 48 and 56 to 61 Non-Discrimination HR4 Total number of incidents of discrimination Less than five complaints were made (none proven). All were investigated. No and corrective actions taken remedial actions were necessary Child Labor HR6 Operations and significant suppliers We conduct more than 97% of our business in the United States and Canada, identified as having significant risk for countries that do not have significant risk for human rights abuses or incidents incidents of child labor and measures taken of child labor. In our international offices, or otherwise when we are working to contribute to the elimination of child labor internationally, we abide by all laws and regulations concerning the hiring of personnel Forced and Compulsory Labor HR7 Operations and significant suppliers We conduct more than 97% of our business in the United States and Canada, identified as having significant risk for countries that do not have significant risk for human rights abuses or incidents of incidents of forced or compulsory labor and forced or compulsory labor. In our international offices, or otherwise when we are measures to contribute to the elimination of working internationally, we abide by all laws and regulations concerning the hiring forced or compulsory labor of personnel Security Practices
HR8*** Percentage of security personnel trained in Not applicable to Stantec the organization’s policies or procedures concerning aspects of human rights that are relevant to operations Indigenous Rights HR9 Total number of incidents of violations 0 incidents involving rights of indigenous people and actions taken SOCIETY
DMA** Disclosure on management approach Goals and performance: SR, pages 18 to 19, 28 to 31, and 62 to 67. Other goals include no corruption, no anticompetitive behavior, and full compliance with all associated laws and regulations. Policy: SR, page 29. 12 Business Conduct policies, Community Investment policy, and all policies related to regulatory compliance; Organizational responsibility: VP, Risk Management/General Counsel, COO, and CEO; Training and awareness: SR, pages 28 to 31, 53 to 55, and 62 to 67; Monitoring and follow-up: SR, pages 28 to 31 and 62 to 67; Additional contextual information: SR, pages 28 to 31 and 62 to 67 Corruption SO2 Percentage and total number of business We submit all our business units for analysis of risks related to corruption through a units analyzed for risks related to corruption survey of all units completed each quarter
STANTEC INC. 87 GRI Indicator Indicator Description 2011 Disclosure
SO3 Percentage of employees trained in We require all employees to complete a mandatory online business ethics training organization’s anticorruption policies and program. In addition, we require all new employees to complete an online procedures training module that includes orientation to our Company policies and procedures. Employees must sign a form confirming their understanding that they are expected to review all Company policies and to act in accordance with these policies. Some of our policies address anticorruption, such as our Conflict of Interest policy and Insider Trading policy. Agreement to comply with Stantec’s policies and practices is confirmed within the context of the signed Employment Agreement at the commencement of employment with Stantec and annually through our formal performance review process SO4 Actions taken in response to incidents of Any allegations of corruption are reported to management and, if necessary, to corruption legal authorities. Instances of corruption would result in a review of policies and procedures, and, where determined necessary, changes to prevent future incidents. In the reporting period, Stantec did not experience any incidents of corruption implicating employees, directors, or other non-arm’s-length parties Public Policy SO5 Public policy positions and participation in In order to avoid the appearance of any attempt to obtain or retain business or to public policy development and lobbying secure an improper advantage with public officials, political candidates, or political parties, we have instituted a Political Contributions policy. Stantec will not contribute funds to or allow the use of its facilities for political fundraising purposes on behalf of candidates for political office, political parties, ballot initiatives, referenda or measures, or elected incumbent office holders at any level—federal, state/provincial, or local. Any exception must be approved in writing by the regional operating unit leader, chief operating officer, or chief executive officer SO6 Total value of financial and in-kind Amount is not large enough to be material contributions to political parties, politicians, and related institutions by country Anti-Competitive Behavior SO7 Total number of legal actions for 0 legal actions anticompetitive behavior, antitrust, and monopoly practices and their outcomes Compliance SO8 Monetary value of significant fines and 0 dollars, 0 nonmonetary sanctions total number of nonmonetary sanctions for noncompliance with laws and regulations PRODUCT RESPONSIBILITY
DMA** Disclosure on management approach Goals and performance: SR, pages 18 to 19 and 36 to 41; Policy: 4 Branding and Communicating policies and 12 Business Conduct policies; Organizational responsibility: VP, Practice & Quality Enhancement and VP, Marketing Resources & Communications; Training and awareness: SR, pages 28 to 31, 36 to 41, and 53 to 55; Monitoring and follow-up: SR, pages 28 to 31 and 36 to 41; Additional contextual information: SR, pages 36 to 41 Customer Health and Safety
PR1** Life cycle stages in which health and safety Safety impacts are assessed to varying degrees in all life cycle stages impacts of products and services are assessed for improvement and percentage of significant products and services categories subject to such procedures PR2 Total number of incidents of noncompliance Incidents of noncompliance with regulations resulting in a fine or penalty: 0; with regulations and voluntary codes Incidents of noncompliance with regulations resulting in a warning: 3; Incidents of concerning health and safety impacts of noncompliance with voluntary codes: 0 products and services during their life cycle, by type of outcomes
88 2011 STANTEC SUSTAINABILITY REPORT GRI Indicator Indicator Description 2011 Disclosure Product and Service Labeling PR4 Total number of incidents of noncompliance 0 incidents with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes
PR5** Practices related to customer satisfaction, SR, pages 22 to 27 and 28 to 31. We use client feedback to improve our including results of surveys measuring performance on a specific project as well as to continually improve our customer satisfaction organizational practices and processes. Specifically, senior Stantec leaders conduct periodic client feedback interviews to evaluate how well the client’s needs have been met and to receive feedback on our performance Marketing Communications
PR6*** Programs for adherence to laws, standards, Not applicable to Stantec and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship PR7 Total number of incidents of noncompliance 0 incidents with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes Customer Privacy PR8 Total number of substantiated complaints 0 complaints regarding breaches of customer privacy and losses of customer data Compliance PR9 Monetary value of significant fines for 0 incidents of noncompliance, 0 monetary sanctions noncompliance with laws and regulations concerning the provision and use of products and services
LEGEND
*: For a definition of this and other terms, see the Glossary ***: The indicator is not material to the Company due on page 90 to the nature of the business.
**: Partial disclosure
AIF: Stantec Annual Information Form dated February 23, IBC: Inside back cover of this report 2012, which can be found on stantec.com under Investors/ Reports & Financials MIC: Notice of Stantec Annual Meeting of Shareholders and Management Information Circular dated March 13, 2012, BR: Stantec 2011 Business Review, which can be found on which can be found on stantec.com under Investors/ Reports stantec.com under Investors/ Reports & Financials & Financials
CDP: Stantec’s Carbon Disclosure Project response dated SR: Stantec’s 2011 Sustainability Report May 2012, which can be found at www.cdproject.net
FR: Stantec 2011 Financial Review, which can be found on stantec.com under Investors/Reports & Financials
STANTEC INC. 89 GLOSSARY
ANSI: The American National Employee (Non-Manager): IMS: Stantec’s Integrated Management Standards Institute. ANSI provides A Stantec employee with a fiscal System, which provides a disciplined and accreditation for verifiers seeking to authority level lower than associate. accountable framework for managing participate in a wide range of GHG risks, quality outcomes, and regulatory programs and registries. For more EMS: Environmental management compliance and has been registered to information, visit www.ansi.org. system. A system an organization can three internationally recognized ISO use to meet related targets for controlling standards. For more information, see CDP: The Carbon Disclosure Project, an the significant environmental impacts pages 30 to 31. independent, not-for-profit organization of its activities and complying with that holds the largest database of primary regulatory requirements. Inactive Employee: Employees who, at corporate climate change information in the time of reporting, were not actively the world. For more information, visit Frontline Manager: A Stantec at work, meaning they were not working www.cdproject.net. employee at the associate or senior at their usual place of employment associate level of fiscal authority. and performing all of the usual and
CO2e: Carbon dioxide equivalent. CO2e customary duties of their occupation on represents the sum of the individual FTE: Full-time equivalent. The unit a regularly scheduled basis. This includes greenhouse gases (GHGs) weighted used to calculate metrics on a per- employees on all types of leave, including to represent the atmospheric effects of employee basis. parental, educational, military, disability,
CO2, the most abundant GHG, relative personal, and temporary layoff. to individual Global Warming Potentials GHG: Greenhouse gas. Greenhouse (GWP). The GWP is a measure of the gases are atmospheric gases that absorb ISO: International Organization for warming effect that a particular GHG and emit radiation, which causes Standardization, a nongovernmental will have on the atmosphere relative to the greenhouse effect that heats the organization that is the world’s largest the impact of CO2. earth’s surface. Carbon dioxide (CO2) developer and publisher of international is the most significant GHG and can standards. For more information, visit Disadvantaged Business be emitted in various ways, including www.iso.org. Enterprise: A business that is at breathing and burning fossil fuels. least 51 percent owned by one or LEED: Leadership in Energy and more socially and economically GRI: Global Reporting Initiative. Environmental Design. A green disadvantaged individuals. Women, The GRI is both an institution building certification program as well Black Americans, Hispanic Americans, encouraging improved corporate as a professional accreditation in green Native Americans, Asian Pacific transparency and the developer of building design, both initially developed Americans, and Subcontinent Asian an internationally recognized by the United States Green Building Americans are presumed to qualify. sustainability reporting framework, the Council. most recent version of which is the G3.1 EBITDA: Earnings Before Interest, guidelines. For more information, visit Lost-Time Days: Days away from work Taxes, Depreciation, and Amortization. www.globalreporting.org. as prescribed by a medical professional Calculated as income before income for work-related injuries or illnesses. taxes less net interest expense, HUBZone Business: A business These days are measured as calendar amortization of intangible assets, certified by the SBA as being located in days beginning the day after the incident. depreciation of property and equipment, a “historically underutilized business and goodwill and intangible impairment. zone” owned and controlled by one or more US Citizens, and with at least 35 ELT: Executive Leadership Team, Stantec’s percent of its employees residing in a senior leadership team that provides HUBZone. strategic direction for the Company.
90 2011 STANTEC SUSTAINABILITY REPORT LTIR: Lost-time injury rate. The rate Practice Area: One of Stantec’s distinct Small Business Enterprise (SB): of injuries so severe that a medical service areas. Each practice area consists A business, including its affiliates, that professional prescribes time off from of several disciplines and service sectors, is independently owned and operated in work. The rate is calculated as lost-time which represent areas of further service the United States, organized for profit, injuries and illnesses multiplied by delivery specialization or focus. For not dominant in its field of operations, 200,000, then divided by the number of organizational purposes, the practice and whose industry-related size worker hours of exposure. This does not areas are grouped into five categories standards meet the SBA’s small business include minor injuries. representing different client and service size standards criteria. Size standards are focus areas. defined by the North American Industry Materiality: The threshold at which Classification System (NAICS). an issue becomes sufficiently relevant SBA: US Small Business that it should be reported. The material Administration. A US government SRI: Socially responsible investing. SRI information in a sustainability report agency that provides support to investment portfolios and stock indices should cover topics and indicators that entrepreneurs and small businesses are screened according to environmental, reflect the organization’s significant and leads the federal government’s social, and/ or governance information. economic, environmental, and social efforts to deliver a portion of federal impacts or that would substantively contracts to small businesses. For more Tonne (t): Standard international influence the assessments and information, visit www.sba.gov. metric measurement equivalent to 1,000 decisions of stakeholders. Information kilograms, approximately 2,205 pounds is material if its omission from the SBA 8(a) Certified Business: or 1.1 short tons. data could hamper the ability of the A small business certified by the SBA report to provide a reasonable and as owned and operated by socially Turnover: The number of employees balanced picture of the organization’s and economically disadvantaged leaving the organization in the sustainability performance. individuals, including Alaska Native reporting period, both voluntarily Corporations and Native American and involuntarily. Includes acquisition Middle Manager: A Stantec employee Indian Tribal-Owned Corporations employees but excludes casual or at the principal or senior principal level as described above for Disadvantaged temporary employees and contractors. of fiscal authority. Business Enterprise. For more Turnover rates are calculated by dividing information, visit www.sba.gov. by the total number of employees in New Employee Hires: each age, gender, or region category as of New employees joining the organization Scope 1 Emissions: All direct GHG December 31, 2011. for the first time. Includes acquisition emissions. This includes stationary employees but excludes rehires, casual or combustion (e.g., natural gas) and TRIR: Total recordable injury rate. temporary employees, and contractors. mobile combustion (e.g., vehicle fuel). The rate is calculated as the number of injuries and illnesses multiplied by OSHA: Occupational Safety and Health Scope 2 Emissions: Indirect GHG 200,000, then divided by the number of Administration, a federal agency of the emissions from consumption of worker hours of exposure. This does not United States that regulates workplace purchased or acquired electricity, heat, include minor injuries. safety and health. or steam.
Senior Manager: A Stantec employee at the vice president or senior vice president level of fiscal authority.
STANTEC INC. 91 THIRD-PARTY ASSESSMENT
MAY 4, 2012
STATEMENT FROM STAKEHOLDER ROUNDTABLE
Background and Participation Canadian Business for Social Responsibility (CBSR) was requested by Stantec Inc. (Stantec) to conduct a roundtable with some of the company’s key stakeholders to solicit feedback and recommendations on Stantec’s draft 2011 Sustainability Report. Stantec’s ultimate objective was to better understand its stakeholders’ expectations and concerns regarding sustainability, to uncover opportunities to subsequently enhance focus areas for its sustainability reporting. This is the first time Stantec has formally reached out to its stakeholders for feedback on the report through an in-person dialogue.
On May 2, 2012, CBSR acted as a third-party facilitator of the dialogue among various stakeholders, which included: PCL Constructors Canada, Sustainalytics, Town of Oakville, Caisse de dépôt et placement du Québec, and Nu Nennè-Stantec. Representatives from Stantec participated as observers and to respond to questions regarding Stantec’s sustainability reporting and operations.
Summary of Discussions The roundtable was held at Stantec’s Toronto office while stakeholders based outside of the Greater Toronto Area participated via teleconference. Stakeholders were asked to provide feedback on the report content, quality, and focus areas; share expectations for the report; and provide recommendations on areas requiring improvement. The following bullets summarize the feedback shared during the roundtable: t Stakeholders were pleased to be involved in the meeting and with Stantec’s willingness to consider their feedback and expectations. t Stakeholders appreciated the level of transparency, balance, completeness, disclosure and progression of historical performance in the report, as well as management involvement and accountability for sustainability. t Stakeholders indicated the report was lengthy and detailed, and presented suggestions for content management. t Stakeholders articulated the need for more clarity on sustainability priorities and long-term objectives, and more context for current indicators measured. t Stakeholders expressed an interest to understand Stantec’s broader sustainable development impacts and how the company influences integration of sustainability principles into client projects.
92 2011 STANTEC SUSTAINABILITY REPORT Summary of Key Recommendations: The following points summarize the key recommendations provided by Stantec’s stakeholders during the May 2 roundtable. t Better define the target audience for whom the sustainability report is published. t Enhance the process for defining material focus areas by leveraging stakeholder and employee engagement. t Provide more context for focus areas and metrics to demonstrate the link between Stantec’s impacts and priorities. t Demonstrate alignment between Stantec’s sustainability vision and the Company’s overall vision. t Provide clearer definitions for who is included in Stantec’s relationship categories such as partners, clients and communities. t Expand on how Stantec manages value chain impacts through its projects, services and interactions with clients. t Provide a more comprehensive description of the broader community impacts of Stantec’s operations by region and disclose impacts on Aboriginal communities. t Consider a more succinct format to the report (e.g., prepare an annual summary report and communicate more non- time-bound information online).
Next Steps Stantec committed to presenting the stakeholder feedback and recommendations to its management team. The management team will determine the extent to which the stakeholder feedback can be integrated and prioritized into the business. Subsequently, the participating stakeholders will be informed of how Stantec will respond to their feedback and recommendations in next year’s report.
CBSR is pleased to have been a participant in this process, and wishes Stantec much success in its future sustainability and reporting endeavors.
Agnieszka Rum CSR Advisor, CBSR
Canadian Business for Social Responsibility
360 BAY STREET, SUITE 300 TORONTO, ONTARIO M5H 2V6 T 416 703 7435 F 416 703 7475 WWW.CBSR.CA
STANTEC INC. 93 LOCATIONS
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94 2011 STANTEC SUSTAINABILITY REPORT CONTACT US
We welcome your feedback. HEAD OFFICE Learn more about Stantec’s sustainability If you have any comments 10160 – 112 Street efforts atwww.stantec.com/sustainability . or questions about this Edmonton AB T5K 2L6 report, contact Canada Have your say! Share your opinions about Tel: 1-780-917-7000 Stantec’s sustainability efforts by completing a fax: 1-780-917-7330 short anonymous online survey at [email protected] www.stantec.com/sr2011survey.